Tera Software Ltd. (Code: 590020) is one of the leading e-governance solution providers that undertakes data entry/scanning works for digitization of information maintained under Right to Information (RTI) Act. It also undertakes short-term projects like issue of photo ID cards, ration cards and election commission cards. Last year, the company successfully executed Maharashtra Vikri Kar Seva Project (VAT implementation of the Maharashtra Sales Tax Department) on BOOR (build, own, operate and refresh) model as the scope of work was computerisation of the Sales Tax Department in the entire state of Maharashtra. Of late, the company has procured six new projects in the State Governments of Andhra Pradesh, Karnataka, Rajasthan, West Bengal and Himachal Pradesh. It has also ventured into imparting computer education in more than 225 schools in Goa and AP by establishing computer labs with computers and providing the teaching staff and maintenance of systems. On the back of satisfactory Q3FY09 numbers, it recorded 10% fall in net profit to Rs.8 cr. on 20% increased sales of Rs.53 cr. for the first nine months ending 31 December 2008. Accordingly it is expected to end FY09 with topline of Rs.70 cr. with PAT of Rs.9.50 cr. i.e. an EPS of Rs.8 on its equity of Rs.12.50 cr. It may declare 15% dividend for FY09, which gives a yield of 7% at CMP. Moreover, the company has few acres of surplus land in Hyderabad, which it can either sell or enter into JV with infrastructure company. The scrip can easily double in 12-15 months. is one of the leading e-governance solution providers that undertakes data entry/scanning works for digitization of information maintained under Right to Information (RTI) Act. It also undertakes short-term projects like issue of photo ID cards, ration cards and election commission cards. Last year, the company successfully executed Maharashtra Vikri Kar Seva Project (VAT implementation of the Maharashtra Sales Tax Department) on BOOR (build, own, operate and refresh) model as the scope of work was computerisation of the Sales Tax Department in the entire state of Maharashtra. Of late, the company has procured six new projects in the State Governments of Andhra Pradesh, Karnataka, Rajasthan, West Bengal and Himachal Pradesh. It has also ventured into imparting computer education in more than 225 schools in Goa and AP by establishing computer labs with computers and providing the teaching staff and maintenance of systems. On the back of satisfactory Q3FY09 numbers, it recorded 10% fall in net profit to Rs.8 cr. on 20% increased sales of Rs.53 cr. for the first nine months ending 31 December 2008. Accordingly it is expected to end FY09 with topline of Rs.70 cr. with PAT of Rs.9.50 cr. i.e. an EPS of Rs.8 on its equity of Rs.12.50 cr. It may declare 15% dividend for FY09, which gives a yield of 7% at CMP. Moreover, the company has few acres of surplus land in Hyderabad, which it can either sell or enter into JV with infrastructure company. The scrip can easily double in 12-15 months.
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