ScoreWhy is Tera Software Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.85 times
2
With a growth in Net Sales of 26.38%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 5 consecutive quarters
- ROCE(HY) Highest at 21.54%
- DEBTORS TURNOVER RATIO(HY) Highest at 1.50 times
- NET SALES(Q) Highest at Rs 74.74 cr
3
Stock is technically in a Mildly Bearish range
- The stocks MACD and KST technical factors are also Bearish
4
With ROCE of 20, it has a Very Attractive valuation with a 2.5 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 23.34%, its profits have risen by 171.9% ; the PEG ratio of the company is 0.1
5
Majority shareholders : Non Institution
6
Market Beating Performance
- The stock has generated a return of 23.34% in the last 1 year, much higher than market (BSE500) returns of 0.10%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Tera Software for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tera Software
-50.32%
0.45
51.76%
Sensex
-11.64%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
68.49%
EBIT Growth (5y)
106.80%
EBIT to Interest (avg)
3.59
Debt to EBITDA (avg)
3.30
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
0.76
Tax Ratio
22.75%
Dividend Payout Ratio
0
Pledged Shares
18.20%
Institutional Holding
0.00%
ROCE (avg)
9.82%
ROE (avg)
12.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
19
Price to Book Value
1.86
EV to EBIT
8.61
EV to EBITDA
8.42
EV to Capital Employed
1.70
EV to Sales
1.20
PEG Ratio
0.09
Dividend Yield
0.55%
ROCE (Latest)
19.99%
ROE (Latest)
16.99%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
NET SALES(Latest six months)
At Rs 124.61 cr has Grown at 87.95%
PAT(Latest six months)
At Rs 11.87 cr has Grown at 56.18%
ROCE(HY)
Highest at 21.54%
DEBTORS TURNOVER RATIO(HY)
Highest at 1.50 times
-15What is not working for the Company
PAT(Q)
At Rs 4.65 cr has Fallen at -25.0% (vs previous 4Q average
NET SALES(Q)
At Rs 49.87 cr has Fallen at -16.2% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 3.29 times
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 5.31 cr
INTEREST(Q)
Highest at Rs 2.17 cr
PBDIT(Q)
Lowest at Rs 7.15 cr.
PBT LESS OI(Q)
Lowest at Rs 4.76 cr.
EPS(Q)
Lowest at Rs 3.72
Loading Valuation Snapshot...
Here's what is working for Tera Software
Debtors Turnover Ratio- Half Yearly
Highest at 1.50 times and Grown
each half year 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
Profit After Tax (PAT) - Quarterly
At Rs 4.65 cr has Fallen at -25.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.20 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 49.87 cr has Fallen at -16.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 59.51 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at 3.29 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 2.17 cr
in the last five quarters and Increased by 13.61 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 7.15 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 4.76 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.72
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 5.31 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 1.19 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
