Stocks To Watch – Tera Software

Tera Software ( BSE Code : 590020) :-

Co. is one of the leading e-governance solution providers, undertaking data entry/scanning works for digitization of information maintained under Right to Information Act. It also undertakes short-term projects like issue of photo ID cards, ration cards and election commission cards. Notably company has also been able to procure six new projects of the State Government of Andhra Pradesh, Karnataka, Rajasthan, West Bengal and Himachal Pradesh. In association with Electronics Corporation Of India Ltd (ECIL), company is executing several projects for Karnataka Valuation and -Registration (KAVERI), Bangalore Electricity Supply Company (BESCOM), Andhra Pradesh Transport Department etc. It is also implementing the most prestigious Andhra Pradesh Schools Project with DPEP (District Primary Education Program) in consortium with M/s. Everonn Systems and M/s. Moreover companys software development division is currently developing a Shopping portal and relevant application based on Java, Java script and other WAN application programs. For FY10, its revenue improved by 30% to Rs 105 cr but net profit declined by 10% to Rs 9.60 cr due to drop in operating margin to 19% from 26% last year. Still it posted an EPS of Rs 8 on equity of Rs 12.50 cr. Even for FY10 company is expected to declare 20% dividend giving an yield of more than 5% at CMP. Buy and hold for couple of months.

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