Is Tera Software the Best Stock in Its Sector? A Look at the Numbers
- October 9, 2026
- Posted by: Lakshit Sharma
- Category: Market
Tera Software CMP Rs 223 (09 Oct 2026). Market cap Rs 272 Cr. ROE 16.99%. P/E 10.96x versus Industry P/E 17.30x.
Quick Answer
Tera Software is one of the names investors compare when screening the IT sector, built on a 16.99% return on equity and a P/E of 10.96x against an Industry P/E of 17.30x. Whether Tera Software is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named IT sector peers, so you can judge that for yourself.
Is Tera Software the best stock in its sector? The stock trades on the NSE at Rs 223 as of 09 October 2026, within its 52-week range of Rs 194.11 to Rs 598.00. Tera Software Ltd, incorporated in 1994, provides IT solutions to government bodies, with build-own-operate-transfer contracts across 22 states and more than 3,000 outlets.
Tera Software sits in the IT sector, and its 16.99% ROE and 10.96x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector’s Industry P/E benchmark.
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About Tera Software
Tera Software Ltd, incorporated in 1994, provides IT solutions to government bodies, with build-own-operate-transfer contracts across 22 states and more than 3,000 outlets. The stock trades about 63 percent below its 52-week high and only about 15 percent above its 52-week low. At a market capitalisation of Rs 272 Cr, it is tracked as part of the IT sector on Univest.
Is Tera Software the Best Stock in Its Sector?
Tera Software makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, combining a 16.99% ROE with a 10.96x P/E against the sector’s 17.30x Industry P/E. Tera Software’s 10.96x P/E is well below the 17.30x Industry P/E with a 16.99% ROE and a debt to equity of 0.27, but the stock is about 63 percent below its 52-week high and a Rs 272 Cr market capitalisation makes it a very small company.
| Metric | Tera Software |
|---|---|
| CMP (NSE) | Rs 222.99 |
| 52-Week High / Low | Rs 598.00 / Rs 194.11 |
| Market Cap | Rs 272 Cr |
| P/E (TTM) vs Industry P/E | 10.96x vs 17.30x |
| P/B | 1.86 |
| ROE | 16.99% |
| EPS (TTM) | Rs 19.82 |
| Dividend Yield | 0.55% |
| Debt to Equity | 0.27 |
Compare Tera Software Against Other IT Sector Stocks
How Tera Software Compares Against Its IT Sector Peers
The table below sets Tera Software against 2 other IT sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity |
|---|---|---|---|---|
| Tera Software | 272 | 10.96 | 16.99% | 0.27 |
| Cybertech Systems and Software | 401 | 12.62 | 14.33% | 0.04 |
| California Software Company | 279 | 19.06 | 25.75% | 0.04 |
| Peer average (2 companies) | – | 15.84 | 20.04% | 0.04 |
Against this peer set, Tera Software’s 16.99% ROE is below the 20.04% peer average, and its P/E of 10.96x runs below the peer average of 15.84x. Tera Software’s 10.96x P/E is well below the 17.30x Industry P/E with a 16.99% ROE and a debt to equity of 0.27, but the stock is about 63 percent below its 52-week high and a Rs 272 Cr market capitalisation makes it a very small company.
What Makes Tera Software Worth Watching in IT
- Low P/E, decent ROE: A 10.96x P/E against a 17.30x Industry P/E, with a 16.99% ROE, is a notable pairing.
- Sharp fall from the high: A drop of about 63 percent from the 52-week high shows how far expectations have been marked down.
- Small size: A market capitalisation of Rs 272 Cr means liquidity and price volatility deserve extra attention.
Tera Software Valuation: Is It Justified?
Tera Software’s 10.96x P/E is well below the 17.30x Industry P/E with a 16.99% ROE and a debt to equity of 0.27, but the stock is about 63 percent below its 52-week high and a Rs 272 Cr market capitalisation makes it a very small company. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is TCI Express the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track Tera Software and other IT sector stocks.
How to Track Tera Software Before You Invest
Before deciding whether Tera Software deserves its label as the best stock in its sector for your own portfolio, compare it directly against IT sector peers using the steps below.
- Open the Univest Screener and search for Tera Software to view live price, valuation ratios, and peer comparisons within the IT sector.
- Compare its P/E, P/B, and ROE against other IT sector stocks before deciding if the current valuation fits your strategy.
- Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
- Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.
Conclusion
Tera Software earns a place in the best stock in its sector conversation on the strength of a 16.99% ROE and a P/E of 10.96x against a 17.30x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Is Tera Software the best stock in its sector?
Ans. Tera Software has a 16.99% ROE and trades at 10.96x P/E against a 17.30x Industry P/E, and compares below the peer average ROE of 20.04% in this article’s named comparison, so the answer depends on what an investor is prioritising.
What is the current share price of Tera Software?
Ans. Tera Software was trading at Rs 222.99 on the NSE as of 09 October 2026, within its 52-week range of Rs 194.11 to Rs 598.00.
What sector does Tera Software belong to?
Ans. Tera Software is classified under the IT sector on Univest.
How does Tera Software compare to its sector peers on P/E?
Ans. Tera Software’s P/E of 10.96x is below the 15.84x average of the 2 named peers compared in this article.
What is Tera Software’s return on equity?
Ans. Tera Software reported a return on equity of 16.99%, which is below the 20.04% average of its named peers in this comparison.
Should I invest in Tera Software based on its sector position?
Ans. Tera Software’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.
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