Tera Software Limited (TERASOFT) Fair Value & Analysis
Technology · IN · Market cap ₹5.0B
Fair value as of: Aug 13, 2026
From 17 valuation models · updated 4 days ago
Share price −15.6% over the past month.
A solid business, but screening 15% overvalued on our models.
What matters now
- The model range is unusually wide (₹180.85 to ₹501.72). The outcome hinges heavily on assumptions, so read the point estimate with caution.
- Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range ₹29.43 – ₹579.35 · fair‑value band ₹180.85 – ₹501.72 · the ₹336.70 price screens above the ₹285.83 fair value. Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Tera Software Limited (TERASOFT) currently trades at ₹336.70, while our model-based Fair Value estimate is ₹285.83, implying the stock looks roughly 15.1% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Tera Software Limited generated revenue of ₹2.4B at a net margin of 10.4%. Revenue grew 122.7% year over year. It earns a return on equity of 18.5%. Net debt stands at ₹341M. Fundamentals as of Aug 13, 2026
Our scenario range runs from ₹180.85 (bear case) to ₹501.72 (bull case); at ₹336.70, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 44% below its 52-week high and 23% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 0% fair-value upside, at -15%, TERASOFT screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 17 models by family
Widest divergence: Growth Earnings (₹491.83) versus Dividend Discount (₹15.12). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 49 · Market factors (momentum, volatility) 47
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Tera Software Limited provides IT and integrated related products and services worldwide. It operates through Integrated Solutions, Technical Division, Projects Division, and Others segments.
Full company description
Tera Software Limited provides IT and integrated related products and services worldwide. It operates through Integrated Solutions, Technical Division, Projects Division, and Others segments. The company offers E-governance and development of enterprise information system for tax/GST, public distribution system, tax automation, registration of land record, road transport and vehicle registration authorities, total revenue management and spot billing system, computer education in schools, fiber network infrastructure, modern record room preparation, AADHAR enrolment, creation of national population register, common service centres, and IT infrastructure, smart metering, and other services. It provides cutting-edge technologies, such as IoT and data analytics to smart cities solutions, which includes traffic, fleet, licensing plates, security, building control, water distribution, sanitation, transit, and street lightings. Tera Software Limited was incorporated in 1994 and is headquartered in Hyderabad, India.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Tera Software Limited reported revenue of ₹2.4B in FY2026 versus ₹1.3B in FY2022, a compound +17.0%/yr. Reported net income was ₹248M in FY2026.
of which total revenue −2.4 pp · buybacks/dilution +0.0 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
TERASOFT screens 15% overvalued. Compare with International Business Machines Corporation →
Peer Group
Information Technology Services · 490 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Information Technology Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| International Business Machines Corporation IBM | $235.98 | $175.76 | -26% |
| Accenture plc ACNN | 2,460 MXN | 300.07 MXN | -88% |
| Tata Consultancy Services Limited TCS | ₹2,350 | ₹3,473 | +48% |
| Infosys Limited INFY | ₹1,176 | ₹1,998 | +70% |
| HCL Technologies Limited HCLTECH | ₹1,365 | ₹1,722 | +26% |
| Wipro Limited WIPRO | ₹183.94 | ₹314.26 | +71% |
| Tech Mahindra Limited TECHM | ₹1,625 | ₹1,521 | -6% |
| Samsung SDS Co 018260 | 235,500 KRW | 235,321 KRW | -0% |
| Persistent Systems Limited PERSISTENT | ₹5,474 | ₹3,259 | -40% |
| Hyundai Autoever Corporation 307950 | 433,000 KRW | 186,323 KRW | -57% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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