ScoreWhy is Tera Software Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.49 times
2
With a growth in Net Sales of 118.17%, the company declared Outstanding results in Sep 25
- The company has declared positive results for the last 3 consecutive quarters
- NET SALES(Q) At Rs 71.43 cr has Grown at 147.3% (vs previous 4Q average)
- PBT LESS OI(Q) At Rs 7.89 cr has Grown at 186.4% (vs previous 4Q average)
- PAT(Q) At Rs 6.56 cr has Grown at 131.9% (vs previous 4Q average)
3
With ROCE of 14.9, it has a Attractive valuation with a 4.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 157.67%, its profits have risen by 132.4% ; the PEG ratio of the company is 0.3
4
Market Beating performance in long term as well as near term
- Along with generating 157.67% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tera Software should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tera Software for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tera Software
64.48%
3.46
45.60%
Sensex
-4.3%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.64%
EBIT Growth (5y)
31.41%
EBIT to Interest (avg)
2.92
Debt to EBITDA (avg)
4.57
Net Debt to Equity (avg)
0.17
Sales to Capital Employed (avg)
0.86
Tax Ratio
25.54%
Dividend Payout Ratio
0
Pledged Shares
21.65%
Institutional Holding
0.15%
ROCE (avg)
7.43%
ROE (avg)
9.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
21
Price to Book Value
2.93
EV to EBIT
13.77
EV to EBITDA
13.53
EV to Capital Employed
2.65
EV to Sales
2.10
PEG Ratio
0.12
Dividend Yield
0.32%
ROCE (Latest)
14.94%
ROE (Latest)
12.23%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend29What is working for the Company
PAT(Latest six months)
Higher at Rs 12.93 cr
ROCE(HY)
Highest at 16.83%
NET SALES(Q)
At Rs 59.14 cr has Grown at 46.4% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 9.82 cr.
DEBTORS TURNOVER RATIO(HY)
Highest at 1.15 times
-7What is not working for the Company
INTEREST(Latest six months)
At Rs 3.53 cr has Grown at 22.15%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 6.27 cr
Loading Valuation Snapshot...
Here's what is working for Tera Software
Profit After Tax (PAT) - Latest six months
At Rs 12.93 cr has Grown at 248.09%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 59.14 cr has Grown at 46.4% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 40.41 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 9.82 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit After Tax (PAT) - Latest six months
Higher at Rs 12.93 cr
than preceding 12 month period ended Dec 2025 of Rs 11.31 crMOJO Watch
In the half year the company has already crossed PAT of the previous twelve months
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 1.15 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Tera Software
Interest - Latest six months
At Rs 3.53 cr has Grown at 22.15%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 6.27 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
