The shares of the Micro-Cap company, specializing in providing IT services and solutions focused on data management, software development, and consulting, hit a 2 percent upper circuit upon receiving Letters of Intent (LOIs) worth Rs. 273.12 crore from Madhyanchal Vidyut Vitran Nigam Ltd.
Price action
With a market capitalization of Rs. 236.06 crores on Tuesday, the shares of Tera Software Limited hit a 2 percent upper circuit, making a high of Rs. 188.67 per share compared to its previous closing price of Rs. 184.98 per share.
What Happened
Tera Software Limited, engaged in providing IT services and solutions focused on data management, software development, and consulting, has received a Letter of Intent (LOI) worth Rs. 273.12 Crores from Madhyanchal Vidyut Vitran Nigam Ltd.
The order intends to provide door-to-door meter reading, spot bill generation, bill distribution, and bill collection services across various distribution zones in Uttar Pradesh.
The contract will be executed over two years and is divided into three clusters: Lucknow Central, Devipatan, and Raebareilly for Rs. 90.07 Crores across MVVNL distribution zones; Agra, Firozabad, and Kanpur-2 for Rs. 75.40 Crores across DVYNL distribution zones; and Azamgarh and Basti for Rs. 107.65 Crores across PuWNL distribution zones.
About the Company
Tera Software Limited is an IT services and solutions company specializing in data management, software development, and consulting. The company provides custom IT solutions across various industries, including government, utilities, and finance. Tera Software focuses on delivering end-to-end services such as software applications, system integration, and digital transformation.
Key Insights
The company has a P/E ratio of 29.37, which is lower than the industry average of 50.78, indicating potential undervaluation. Its PEG ratio of 0.04 further suggests that the stock may be undervalued. Additionally, the company maintains a low debt-to-equity ratio of 0.25, reflecting strong financial stability.
Financials
The company’s revenue rose by 15.44 percent from Rs. 21.63 crore to Rs. 24.97 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 1.11 crore to Rs. 2.13 crore during the same period.
Written By Sridhar J
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