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
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
4
With ROCE of 22.4, it has a Attractive valuation with a 5.6 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 11.16%, its profits have risen by 38.8% ; the PEG ratio of the company is 1
5
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
6
Market Beating performance in long term as well as near term
- Along with generating 11.16% 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 buy?
- 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, Medium Return
Absolute
Risk Adjusted
Volatility
Silver Touch
140.43%
0.29
38.78%
Sensex
-5.16%
0.44
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
25.15%
EBIT Growth (5y)
54.51%
EBIT to Interest (avg)
10.49
Debt to EBITDA (avg)
0.69
Net Debt to Equity (avg)
0.12
Sales to Capital Employed (avg)
1.64
Tax Ratio
25.47%
Dividend Payout Ratio
2.86%
Pledged Shares
4.08%
Institutional Holding
0.68%
ROCE (avg)
19.00%
ROE (avg)
13.92%
Valuation Key Factors 
Factor
Value
P/E Ratio
69
Industry P/E
21
Price to Book Value
14.62
EV to EBIT
45.51
EV to EBITDA
39.37
EV to Capital Employed
13.19
EV to Sales
7.23
PEG Ratio
1.14
Dividend Yield
0.03%
ROCE (Latest)
28.99%
ROE (Latest)
21.06%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Movement
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 quartersMOJO 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 quartersMOJO 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 quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 21.48%
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 17.93 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 13.22 cr.
in the last five quartersMOJO 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 periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)