Why is Silver Touch Technologies Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.49 times
2
Healthy long term growth as Operating profit has grown by an annual rate 52.94%
3
Positive results in Dec 25
- ROCE(HY) Highest at 20.78%
- NET SALES(Q) Highest at Rs 96.34 cr
- PBDIT(Q) Highest at Rs 19.09 cr.
4
With ROCE of 22.4, it has a Very Expensive valuation with a 10.3 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 118.52%, its profits have risen by 38.8% ; the PEG ratio of the company is 1.8
5
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 0.7% over the previous quarter and collectively hold 0.8% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Market Beating performance in long term as well as near term
- Along with generating 118.52% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Silver Touch should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Silver Touch for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Silver Touch
118.52%
2.49
47.68%
Sensex
5.37%
0.47
11.36%
Quality key factors
Factor
Value
Sales Growth (5y)
26.66%
EBIT Growth (5y)
52.94%
EBIT to Interest (avg)
10.29
Debt to EBITDA (avg)
0.71
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
1.63
Tax Ratio
24.72%
Dividend Payout Ratio
3.95%
Pledged Shares
4.08%
Institutional Holding
0.80%
ROCE (avg)
17.75%
ROE (avg)
13.24%
Valuation Key Factors 
Factor
Value
P/E Ratio
70
Industry P/E
27
Price to Book Value
12.48
EV to EBIT
45.92
EV to EBITDA
38.44
EV to Capital Employed
10.29
EV to Sales
5.97
PEG Ratio
1.80
Dividend Yield
0.04%
ROCE (Latest)
22.40%
ROE (Latest)
17.91%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
26What is working for the Company
ROCE(HY)
Highest at 20.78%
NET SALES(Q)
Highest at Rs 96.34 cr
PBDIT(Q)
Highest at Rs 19.09 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 19.82%
PBT LESS OI(Q)
Highest at Rs 14.60 cr.
PAT(Q)
Highest at Rs 11.01 cr.
EPS(Q)
Highest at Rs 8.68
-9What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.33 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.71 times
INTEREST(Q)
Highest at Rs 2.35 cr
Loading Valuation Snapshot...
Here's what is working for Silver Touch
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 14.60 cr has Grown at 118.24%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 11.01 cr has Grown at 109.3%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 96.34 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 96.34 cr has Grown at 29.52%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 19.09 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 19.82%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 14.60 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 11.01 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 8.68
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Silver Touch
Interest - Quarterly
Highest at Rs 2.35 cr
in the last five quarters and Increased by 18.69 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.33 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 2.71 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






