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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Silver Touch

IZMO

Xchanging Sol.

Innovana Think.

Dynacons Sys.

Kellton Tech

Allied Digital

Aurum Proptech

Excelsoft Tech.

Sahana Systems

Veefin Solutions

Why is Silver Touch Technologies Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.49 times

Healthy long term growth as Operating profit has grown by an annual rate 52.94%

Flat results in Sep 25

OPERATING PROFIT TO INTEREST (Q) Lowest at 6.97 times
DEBT-EQUITY RATIO(HY) Highest at 0.33 times
DEBTORS TURNOVER RATIO(HY) Lowest at 2.71 times

With ROCE of 22.4, it has a Attractive valuation with a 5.4 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 10.14%, its profits have risen by 38.8% ; the PEG ratio of the company is 0.9

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

Market Beating performance in long term as well as near term

Along with generating 10.14% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

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?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Silver Touch

9.81%

0.31

31.58%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

0.10%

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

6.47

EV to EBIT

24.22

EV to EBITDA

20.27

EV to Capital Employed

5.43

EV to Sales

3.15

PEG Ratio

0.93

Dividend Yield

0.07%

ROCE (Latest)

22.40%

ROE (Latest)

17.91%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

14What is working for the Company

PAT(Latest six months)

At Rs 11.50 cr has Grown at 48.96%

ROCE(HY)

Highest at 20.78%

PBT LESS OI(Q)

At Rs 9.62 cr has Grown at 51.97%

-12What is not working for the Company

OPERATING PROFIT TO INTEREST (Q)

Lowest at 6.97 times

DEBT-EQUITY RATIO(HY)

Highest at 0.33 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.71 times

INTEREST(Q)

Highest at Rs 1.98 cr

Loading Valuation Snapshot...

Here's what is working for Silver Touch

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 9.62 cr has Grown at 51.97%

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 7.46 cr has Grown at 69.5%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Here's what is not working for Silver Touch

Interest - Quarterly

At Rs 1.98 cr has Grown at 53.49%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 6.97 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 1.98 cr

in the last five quarters and Increased by 53.49 % (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 periods

MOJO 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 periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio