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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tera Software Ltd

About the Company - Tera Software Ltd

Tera Software Ltd. is a Public Limited Listed company incorporated on 26/09/1994 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L72200TG1994PLC018391 and registration number is 018391. Currently Company is involved in the business activities of Computer programming activities. Company’s Total Operating Revenue is Rs. 127.14 Cr. and Equity Capital is Rs. 12.51 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software# 8-2-293/82/A/1107, Hyderabad Telangana 500033info@terasoftware.in
http://www.terasoftware.com
Management
NamePosition Held
Mr. T GopichandChairman & Managing Director
Mr. T Bapaiah ChowdaryNon Executive Director
Ms. T Pavana DeviNon Executive Director
Dr. T V LakshmiIndependent Director
Dr. T Hanuman ChowdaryIndependent Director
Mr. Divakar AtluriIndependent Director
Prof. (Dr) Braja Bandhu NayakIndependent Director

Tera Software Ltd. Share Price Update

Share PriceValue
Today₹65.68
Previous Day₹69.13

Basic Stock Data of Tera Software Ltd

Market Cap 80.1 Cr.
Current Price 64.0
High / Low82.5/28.5
Stock P/E23.1
Book Value 87.2
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 10.0

Data Source: screener.in

Competitors of Tera Software Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Subex Ltd 2,117 Cr. 37.645.8/25.0 8.760.00 %9.35 %9.56 % 5.00
Mphasis Ltd 50,698 Cr. 2,6842,838/1,66032.4 4191.82 %28.9 %21.9 % 10.0
Softtech Engineers Ltd 305 Cr. 300306/122137 1220.00 %7.85 %3.91 % 10.0
63 Moons Technologies Ltd 2,353 Cr. 511691/16211.9 7040.39 %1.99 %1.43 % 2.00
Tech Mahindra Ltd 1,25,748 Cr. 1,2881,416/98144.7 2712.50 %22.1 %17.6 % 5.00
Industry Average36,244.20 Cr964.1245.20304.950.94%14.04%10.88%6.40

Tera Software Ltd Quarterly Results

MonthSep 2022Jun 2023Sep 2023
Sales26.4819.4421.17
Expenses26.1917.6419.15
Operating Profit0.291.802.02
OPM %1.10%9.26%9.54%
Other Income0.841.08-0.50
Interest1.760.930.74
Depreciation0.060.040.04
Profit before tax-0.691.910.74
Tax %-5.80%58.64%125.68%
Net Profit-0.730.79-0.18
EPS in Rs-0.580.63-0.14

Tera Software Ltd Quarterly Chart

Tera Software Ltd Profit & Loss

MonthMar 2023
Sales131
Expenses141
Operating Profit-10
OPM %-8%
Other Income25
Interest6
Depreciation0
Profit before tax9
Tax %60%
Net Profit3
EPS in Rs2.77
Dividend Payout %0%

Tera Software Ltd Profit & Loss Yearly Chart

Unable to calculate Year-wise YoY Net Profit Growth.

Tera Software Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:%
TTM:%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:%
Stock Price CAGR
10 Years:16%
5 Years:10%
3 Years:16%
1 Year:77%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Tera Software Ltd Balance Sheet

MonthMar 2023Sep 2023
Equity Capital1313
Reserves97
Borrowings29
Other Liabilities62
Total Liabilities200
Fixed Assets27
CWIP0
Investments0
Other Assets174
Total Assets200

Tera Software Ltd Reserves and Borrowings Chart

Tera Software Ltd Cash Flow

MonthMar 2023
Cash from Operating Activity 33
Cash from Investing Activity 3
Cash from Financing Activity -30
Net Cash Flow6

Tera Software Ltd Financial Efficiency Indicators

MonthMar 2023
Debtor Days
Inventory Days
Days Payable
Cash Conversion Cycle
Working Capital Days
ROCE %

Tera Software Ltd Financial Efficiency Indicators Chart

Tera Software Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters47.54%47.54%47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%
Public52.46%52.46%52.47%52.47%52.47%52.47%52.46%52.46%52.45%52.46%52.45%52.46%
No. of Shareholders13,12114,26818,02017,23616,77716,58117,85217,23116,68316,12415,82617,492

Tera Software Ltd Shareholding Pattern Chart

No. of Tera Software Ltd Shareholders

This stock is not held by any mutual fund

Tera Software Ltd ROCE Trend

Tera Software Ltd EPS Trend

Tera Software Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)2.77-1.040.675.212.94
Diluted EPS (Rs.)2.77-1.040.675.212.94
Cash EPS (Rs.)2.96-0.651.165.864.97
Book Value[Excl.RevalReserv]/Share (Rs.)86.2185.8386.8486.9781.90
Book Value[Incl.RevalReserv]/Share (Rs.)86.2185.8386.8486.9781.90
Revenue From Operations / Share (Rs.)104.54101.62128.46214.97141.03
PBDIT / Share (Rs.)12.198.558.4915.9412.47
PBIT / Share (Rs.)12.008.178.0115.3010.43
PBT / Share (Rs.)6.92-0.651.227.884.76
Net Profit / Share (Rs.)2.77-1.040.675.212.94
PBDIT Margin (%)11.668.416.617.418.84
PBIT Margin (%)11.488.036.237.117.39
PBT Margin (%)6.61-0.640.953.663.37
Net Profit Margin (%)2.64-1.020.522.422.08
Return on Networth / Equity (%)3.21-1.210.775.993.58
Return on Capital Employeed (%)13.139.038.8017.0712.46
Return On Assets (%)1.75-0.470.282.071.76
Long Term Debt / Equity (X)0.040.040.030.010.01
Total Debt / Equity (X)0.220.560.500.270.49
Asset Turnover Ratio (%)0.550.440.521.030.89
Current Ratio (X)1.931.451.411.361.63
Quick Ratio (X)1.931.431.401.341.52
Interest Coverage Ratio (X)2.400.961.252.152.20
Interest Coverage Ratio (Post Tax) (X)1.540.881.101.701.52
Enterprise Value (Cr.)45.52106.3788.3930.4586.23
EV / Net Operating Revenue (X)0.340.830.540.110.48
EV / EBITDA (X)2.989.948.321.535.53
MarketCap / Net Operating Revenue (X)0.280.430.290.060.27
Price / BV (X)0.340.520.430.150.47
Price / Net Operating Revenue (X)0.280.430.290.060.27
EarningsYield0.09-0.020.010.380.07

Tera Software Ltd Profitability Ratios (%)

Tera Software Ltd Liquidity Ratios

Tera Software Ltd Liquidity Ratios (%)

Tera Software Ltd Interest Coverage Ratios (X)

Tera Software Ltd Valuation Ratios

Fair Value / Intrinsic Value of Tera Software Ltd

Fair Value: ₹308.19

The stock is undervalued by 381.55% compared to the current price ₹64

*Investments are subject to market risks

Strength and Weakness of Tera Software Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 0.00, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of 0.00, which is a positive sign.
  3. The company has higher reserves (48.50 cr) compared to borrowings (14.50 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (131.00 cr) and profit (9.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 10.78 and average Dividend Yield of 2.79%.
  2. The stock has a low average ROCE of 0.00%, which may not be favorable.

Should I Buy Tera Software Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Tera Software Ltd:
    1. Net Profit Margin: 2.64%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.13% (Industry Average ROCE: 14.04%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 1.54
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.93
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 23.1 (Industry average Stock P/E: 45.2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.22
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tera Software Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE