Silver Touch Technologies Ltd (SILVERTUC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

InfoBeans Tech.

Ceinsys Tech

Silver Touch

BLS E-Services

GHV Infra

Network People

Sasken Technol.

Magellanic Cloud

Saksoft

Protean eGov

Accelya Solution

Why is Silver Touch Technologies Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.01 times

Healthy long term growth as Operating profit has grown by an annual rate 66.37%

Positive results in Mar 26

OPERATING PROFIT TO INTEREST(Q) Highest at 15.42 times
NET SALES(Q) Highest at Rs 100.53 cr
PBDIT(Q) Highest at Rs 21.59 cr.

With ROCE of 22.4, it has a Very Expensive valuation with a 11.7 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 104.69%, its profits have risen by 64.4% ; the PEG ratio of the company is 1

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Returns over the last 3 years

Along with generating 104.69% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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

105.4%

2.15

49.11%

Sensex

-4.15%

-0.31

13.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.61%

EBIT Growth (5y)

66.37%

EBIT to Interest (avg)

10.49

Debt to EBITDA (avg)

0.71

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.63

Tax Ratio

25.47%

Dividend Payout Ratio

3.95%

Pledged Shares

4.08%

Institutional Holding

0.68%

ROCE (avg)

17.75%

ROE (avg)

13.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.24

EV to EBIT

42.69

EV to EBITDA

36.62

EV to Capital Employed

11.72

EV to Sales

6.35

PEG Ratio

1.01

Dividend Yield

0.03%

ROCE (Latest)

22.40%

ROE (Latest)

17.91%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 15.42 times

NET SALES(Q)

Highest at Rs 100.53 cr

PBDIT(Q)

Highest at Rs 21.59 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 21.48%

PBT LESS OI(Q)

Highest at Rs 17.93 cr.

PAT(Q)

Highest at Rs 13.22 cr.

-3What is not working for the Company

INTEREST(9M)

At Rs 5.73 cr has Grown at 55.71%

Loading Valuation Snapshot...

Here's what is working for Silver Touch

Operating Profit to Interest - Quarterly

Highest at 15.42 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 17.93 cr has Grown at 44.60%

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 13.22 cr has Grown at 43.5%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 100.53 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 21.59 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 21.48%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 17.93 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 13.22 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Silver Touch

Interest - Nine Monthly

At Rs 5.73 cr has Grown at 55.71%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)