NSEI:TERASOFT

Stock Analysis Report

Executive Summary

Tera Software Limited provides IT and integrated related products and services in India.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

How has Tera Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TERASOFT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.6%

TERASOFT

-0.5%

IN IT

-0.7%

IN Market


1 Year Return

-35.3%

TERASOFT

8.6%

IN IT

10.0%

IN Market

Return vs Industry: TERASOFT underperformed the Indian IT industry which returned 9.5% over the past year.

Return vs Market: TERASOFT underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

TERASOFTIndustryMarket
7 Day-8.6%-0.5%-0.7%
30 Day-9.0%1.6%-0.3%
90 Day-6.5%7.6%3.2%
1 Year-35.3%-35.3%11.4%8.6%12.0%10.0%
3 Year-73.3%-73.3%70.2%60.3%23.9%17.1%
5 Yearn/a57.0%42.5%38.3%25.6%

Price Volatility Vs. Market

How volatile is Tera Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tera Software undervalued compared to its fair value and its price relative to the market?

4.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TERASOFT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TERASOFT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TERASOFT is good value based on its PE Ratio (4.5x) compared to the IT industry average (11.2x).

PE vs Market: TERASOFT is good value based on its PE Ratio (4.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TERASOFT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TERASOFT is good value based on its PB Ratio (0.3x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Tera Software forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tera Software has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tera Software performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TERASOFT has high quality earnings.

Growing Profit Margin: TERASOFT's current net profit margins (2.4%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: TERASOFT's earnings have declined by -11.4% per year over the past 5 years.

Accelerating Growth: TERASOFT's earnings growth over the past year (177.6%) exceeds its 5-year average (-11.4% per year).

Earnings vs Industry: TERASOFT earnings growth over the past year (177.6%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: TERASOFT's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tera Software's financial position?


Financial Position Analysis

Short Term Liabilities: TERASOFT's short term assets (₹2.0B) exceed its short term liabilities (₹1.3B).

Long Term Liabilities: TERASOFT's short term assets (₹2.0B) exceed its long term liabilities (₹31.3M).


Debt to Equity History and Analysis

Debt Level: TERASOFT's debt to equity ratio (44.1%) is considered high.

Reducing Debt: TERASOFT's debt to equity ratio has reduced from 56.4% to 44.1% over the past 5 years.

Debt Coverage: TERASOFT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TERASOFT's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: TERASOFT has a low level of unsold assets or inventory.

Debt Coverage by Assets: TERASOFT's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

What is Tera Software's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TERASOFT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TERASOFT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TERASOFT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TERASOFT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TERASOFT is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TERASOFT's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.4yrs

Average board tenure


CEO

Gopi Tummala (62yo)

₹8,400,000

Compensation

Mr. Gopi Chand Tummala serves as the Managing Director and Vice Chairman of Tera Software Limited., and has been its Executive Director since September 27, 2003. Mr. Chand has 27 years of experience in IT  ...


CEO Compensation Analysis

Compensation vs Market: Gopi's total compensation ($USD117.39K) is above average for companies of similar size in the Indian market ($USD50.31K).

Compensation vs Earnings: Gopi's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Gopi Tummala
Vice Chairman & MD0yrs₹8.40m21.37% 64.9m
Tripuraneni Chowdary
Non-Executive Independent Director16.4yrs₹108.00kno data
Thozuvanoor Lakshmi
Non-Executive Independent Director16.4yrs₹82.00k0.018% 54.6k
Tummala Devi
Non-Executive Director0yrs₹65.00k9.39% 28.5m
Tummala Choudary
Non-Executive Director19.4yrs₹82.00k1.2% 3.6m
Surapaneni Sree Rama Rao
Independent Chairman of the Board5.4yrs₹80.00kno data

16.4yrs

Average Tenure

62yo

Average Age

Experienced Board: TERASOFT's board of directors are seasoned and experienced ( 16.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tera Software Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tera Software Limited
  • Ticker: TERASOFT
  • Exchange: NSEI
  • Founded: 1994
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹303.413m
  • Shares outstanding: 12.51m
  • Website: https://www.terasoftware.com

Number of Employees


Location

  • Tera Software Limited
  • #8-2-293/82/A/1107, Plot No: 1107
  • Road No: 55
  • Hyderabad
  • Andhra Pradesh
  • 500033
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533982BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2004
TERASOFTNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2004

Biography

Tera Software Limited provides IT and integrated related products and services in India. It operates through Integrated Solutions Division, Technical Division, and Projects Division segments. The company offers its services in various categories, such as system integration and networking, and software development and consultancy, as well as GST billing, invoicing, and filing software. Its products include customer and data management, consulting, and software solutions. The company also provides services for Aadhaar; creation of national population register; sales tax automation; electricity billing system; RTA project; ration cards; computer education in schools; and socio economic and caste census. It serves energy and utilities, education, banking and financial services, communications, and consumer goods industries. The company was founded in 1994 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:28
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.