Check Before You Invest : Silver Touch Technologies Ltd

BSE: 543525 NSE: SILVERTUC ISIN: INE625X01026

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Silver Touch Technologies Ltd belong to?

Silver Touch Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Silver Touch Technologies Ltd a good quality company?

Silver Touch Technologies Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Silver Touch Technologies Ltd undervalued or overvalued?

Silver Touch Technologies Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Silver Touch Technologies Ltd a good buy now?

Silver Touch Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd revenue growth is 29% for FY-2025, which is above its 5-year CAGR of 8.25%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Return on capital employed is 23.18% for FY-2025, which is above its 5-year historical median of 14.88%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Return on Asset is 11.2%, which is above its 5-year historical median of 6.81%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Return on equity is 18.92% for FY-2025, which is above its 5-year historical median of 10.14%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Cash conversion cycle is 72 days, above its 5-year historical median of 58 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.32	1.15
ROE	18.92	10.14
ROCE	23.18	14.88
Cash Conversion Cycle	72 days	58 days

Q.6 Gross Profit margin of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.5% for FY-2025, which is above its 5-year median of 10.5%, indicating increasing margins.

Q.7 Operating Profit Margin of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.72% for FY-2025, which is above its 5-year median of 9.83% indicating increasing margins.

Q.8 Net Profit Margin of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Net Profit Margin is 8.51% for FY-2025, is above with its 5-year median of 5.95%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.5	10.5
Operating Profit Margin	13.72	9.83
Net Profit Margin	8.51	5.95

Q.9 Debt to Equity ratio of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Debt-to-Equity ratio is 0.33, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Silver Touch Technologies Ltd?

Silver Touch Technologies Ltd Debt to cash flow from operations is -8.36, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Silver Touch Technologies Ltd?

Promoters hold 74.62% of the Silver Touch Technologies Ltd, with 4.08% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Silver Touch Technologies Ltd vs industry peers?

Silver Touch Technologies Ltd revenue CAGR is 8.25%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	29	10.9
Gross Profit Growth	44	18.3
Operating Profit Growth	54.2	18.8
Net Profit Growth	43.8	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.32	0.5
ROE	18.92	5.83
ROCE	23.18	6.79
Cash Conversion Cycle (days)	71.69	47

Valuation & price assessment

Q.1 Stock return of Silver Touch Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 14.83% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	14.8%	67%	130.4%

Q.3 Valuation ratios of Silver Touch Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	53.65	65.84	47.37
Price to Book	12.05	7.03	2.63
Price to Sales	6.43	3.56	4.79
EV to EBITDA	32.35	34.02	16.48

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