Hyderabad-headquartered Tera Software Ltd's shares rose a whopping 120% in mere two weeks. The big rally in the microcap IT firm's stock comes amid the company, as a part of a consortium with ITI, emerging as the lowest bidder (L1) for three packages of BharatNet phase-3 project for a total value of Rs 3,022 crore.
"Tera Software has participated in the bids of BharatNet Project for Middle Mile Network - Phase-3 with ITI (PSU) as consortium partner in the states of Himachal Pradesh (Package No.8), West Bengal and Andaman & Nicobar (package No.9), emerged as L1 with a total worth of order value of Rs 3,022 crore," the company said in an exchange filing earlier this month.
"Tera Software Limited is one and only company having presence in BharatNet projects from Phase I onwards in the state of Andhra Pradesh, Phase II in Odisha successfully and now entering in to Phase III BharatNet Projects," it said.
BSNL had invited tenders for the design, supply, construction, installation, upgradation, operation and maintenance of the middle mile network of BharatNet for 16 packages/circles.
On November 5, Tera Software's shares on BSE were trading at Rs 79.95 apiece and on November 19, the company's shares closed at upper circuit and reached Rs 179.59 apiece, a jump of a massive 124%. The market capitalisation of the stock is Rs 225 crore.
BharatNet project is funded through Digital Bharat Nidhi (Universal Service Obligation Fund) (USOF) under the Department of Telecommunications (DoT). The project aims to bridge the 'digital divide' by delivering high-speed broadband connectivity with-bandwidth of 100 Mbps to all Gram Panchayats (GPs) and villages in India ensuring equitable access to online services for all, especially those in- rural areas. The project encompasses connecting all 640,000 Villages, Blocks, and Gram Panchayats across India with high-speed broadband internet connectivity.
The stock is on an upsurge also due to the company returning to black in the September quarter.
It reported consolidated net profit of Rs 1.37 crore in Q2FY25 as against net loss of Rs 49 lakh in the year-ago period.
The company's consolidated total income from operations rose 18% to Rs 26 crore in Q2FY25 from Rs 22 crore in Q2FY24.
According to the September 2024 shareholding pattern, promoters hold 47.53 percent of the company’s shares. Tera Software is a professional service provider in the IT industry, known for executing Build-Operate-Transfer (BOT) projects across 22 states in India.
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