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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Silver Touch Technologies Ltd

About the Company - Silver Touch Technologies Ltd

Silver Touch Technologies Ltd. is a Public Limited Listed company incorporated on 02/02/1995 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L72200GJ1995PLC024465 and registration number is 024465. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 128.37 Cr. and Equity Capital is Rs. 12.68 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software2nd Floor, Saffron, Ahmedabad Gujarat 380006info@silvertouch.com
http://www.silvertouch.com
Management
NamePosition Held
Mr. Vipul H ThakkarChairman & Managing Director
Mr. Minesh V DoshiWhole Time Director
Mr. Palak V ShahWhole Time Director
Mr. Jignesh A PatelWhole Time Director
Mr. Himanshu S JainWhole Time Director
Dr.(Ms.) Gayatri M DoctorIndependent Director
Mr. Ronak S ShahIndependent Director
Mr. Harivadan P ThakerIndependent Director
Mr. Piyush K SinhaIndependent Director
Mr. Jignesh ShahIndependent Director
Mr. Sandeep H ShahIndependent Director
Mr. Apurva DamaniIndependent Director

Silver Touch Technologies Ltd. Share Price Update

Share PriceValue
Today₹718.75
Previous Day₹694.65

Basic Stock Data of Silver Touch Technologies Ltd

Market Cap 892 Cr.
Current Price 703
High / Low780/328
Stock P/E63.1
Book Value 79.0
Dividend Yield0.07 %
ROCE15.5 %
ROE10.8 %
Face Value 10.0

Data Source: screener.in

Competitors of Silver Touch Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Infosys Ltd 6,87,454 Cr. 1,6561,733/1,18528.2 1932.05 %40.5 %31.8 % 5.00
Tanla Platforms Ltd 13,172 Cr. 9801,318/49324.5 1301.02 %37.9 %31.2 % 1.00
Melstar Information Technologies Ltd 7.57 Cr. 5.306.30/1.85 2.770.00 %177 %% 10.0
LTIMindtree Ltd 1,59,995 Cr. 5,4026,443/4,13034.8 6101.10 %37.7 %28.6 % 1.00
Avance Technologies Ltd 309 Cr. 1.561.56/0.04114 1.880.00 %%% 1.00
Industry Average172,187.51 Cr1,608.9740.30187.530.83%58.62%18.32%3.60

Silver Touch Technologies Ltd Quarterly Results

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales28.1637.0435.1140.5633.9442.3646.0943.9443.3951.75
Expenses26.3033.6630.2937.7231.1837.4241.5536.7139.8445.65
Operating Profit1.863.384.822.842.764.944.547.233.556.10
OPM %6.61%9.13%13.73%7.00%8.13%11.66%9.85%16.45%8.18%11.79%
Other Income0.000.000.000.000.000.000.000.000.000.00
Interest0.190.210.180.240.200.300.510.380.400.27
Depreciation0.710.580.901.110.891.281.151.361.241.26
Profit before tax0.962.593.741.491.673.362.885.491.914.57
Tax %16.67%25.10%18.45%56.38%22.16%36.01%24.65%25.32%23.04%21.23%
Net Profit0.801.943.040.661.312.142.174.091.473.61
EPS in Rs0.631.532.400.521.031.691.713.231.162.85

Silver Touch Technologies Ltd Quarterly Chart

Silver Touch Technologies Ltd Profit & Loss

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales117140123172211190152140164185
Expenses104128111156191177148128147164
Operating Profit1312121720134121721
OPM %11%9%10%10%9%7%3%8%10%12%
Other Income1111111120
Interest3331222112
Depreciation7543442355
Profit before tax45614158191315
Tax %36%33%32%39%28%32%8%27%27%
Net Profit3348115161011
EPS in Rs4.665.477.246.658.324.150.785.077.668.95
Dividend Payout %23%15%7%8%6%12%64%0%0%

Silver Touch Technologies Ltd Profit & Loss Yearly Chart

Silver Touch Technologies Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:-1%
3 Years:-5%
TTM:18%
Compounded Profit Growth
10 Years:%
5 Years:3%
3 Years:23%
TTM:125%
Stock Price CAGR
10 Years:%
5 Years:42%
3 Years:96%
1 Year:104%
Return on Equity
10 Years:%
5 Years:8%
3 Years:7%
Last Year:11%

Silver Touch Technologies Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital66613131313131313
Reserves30333653636869738288
Borrowings2223173810101123
Other Liabilities27451749494142374239
Total Liabilities8510776117133132124123148162
Fixed Assets15161716191919223130
CWIP0000000079
Investments0000000111
Other Assets70905910111311210499109122
Total Assets8510776117133132124123148162

Silver Touch Technologies Ltd Reserves and Borrowings Chart

Silver Touch Technologies Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -15138-7012816
Cash from Investing Activity -2-5-3-3-5-3-2-7-19
Cash from Financing Activity 4-2-9282-6-87
Net Cash Flow2-218-4-04-74

Silver Touch Technologies Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days115159102137101115114117123
Inventory Days302812134661212
Days Payable711564112582105154308438
Cash Conversion Cycle743173242316-34-179-304
Working Capital Days9589876282104113109111
ROCE %13%15%24%22%11%3%11%16%

Silver Touch Technologies Ltd Financial Efficiency Indicators Chart

Silver Touch Technologies Ltd Share Holding Pattern

MonthJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.59%74.59%74.59%74.59%74.59%74.59%74.51%
Public25.41%25.41%25.41%25.41%25.41%25.41%25.48%
No. of Shareholders4505616286987501,2331,262

Silver Touch Technologies Ltd Shareholding Pattern Chart

No. of Silver Touch Technologies Ltd Shareholders

This stock is not held by any mutual fund

Silver Touch Technologies Ltd ROCE Trend

Silver Touch Technologies Ltd EPS Trend

Silver Touch Technologies Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.664.970.784.158.33
Diluted EPS (Rs.)7.664.970.784.158.33
Cash EPS (Rs.)11.357.582.737.6111.73
Book Value[Excl.RevalReserv]/Share (Rs.)73.9165.2261.2560.4756.92
Book Value[Incl.RevalReserv]/Share (Rs.)75.0068.2764.3063.5259.97
Revenue From Operations / Share (Rs.)129.16110.08120.04149.75166.21
PBDIT / Share (Rs.)15.3410.044.0411.1816.40
PBIT / Share (Rs.)11.657.432.097.7212.99
PBT / Share (Rs.)10.566.790.856.1311.59
Net Profit / Share (Rs.)7.664.970.784.158.32
NP After MI And SOA / Share (Rs.)7.664.970.784.158.32
PBDIT Margin (%)11.879.123.367.469.86
PBIT Margin (%)9.026.751.745.157.81
PBT Margin (%)8.176.160.714.096.97
Net Profit Margin (%)5.934.510.642.775.00
NP After MI And SOA Margin (%)5.934.510.642.775.00
Return on Networth / Equity (%)10.367.621.276.8614.61
Return on Capital Employeed (%)13.9510.102.9911.6421.03
Return On Assets (%)6.575.010.793.997.93
Long Term Debt / Equity (X)0.040.000.010.010.01
Total Debt / Equity (X)0.110.000.010.130.11
Asset Turnover Ratio (%)1.201.051.101.361.64
Current Ratio (X)2.422.872.642.131.95
Quick Ratio (X)2.402.852.612.111.93
Dividend Payout Ratio (NP) (%)13.0520.100.0012.046.05
Dividend Payout Ratio (CP) (%)8.8113.190.006.574.29
Earning Retention Ratio (%)86.9579.900.0087.9693.95
Cash Earning Retention Ratio (%)91.1986.810.0093.4395.71
Interest Coverage Ratio (X)14.0115.503.267.0211.69
Interest Coverage Ratio (Post Tax) (X)7.998.681.633.616.93
Enterprise Value (Cr.)459.05239.5994.98131.49158.24
EV / Net Operating Revenue (X)2.801.720.620.690.75
EV / EBITDA (X)23.6018.8218.549.277.61
MarketCap / Net Operating Revenue (X)2.831.850.700.680.75
Retention Ratios (%)86.9479.890.0087.9593.94
Price / BV (X)4.953.121.391.702.22
Price / Net Operating Revenue (X)2.831.850.700.680.75
EarningsYield0.020.020.010.040.06

Silver Touch Technologies Ltd Profitability Ratios (%)

Silver Touch Technologies Ltd Liquidity Ratios

Silver Touch Technologies Ltd Liquidity Ratios (%)

Silver Touch Technologies Ltd Interest Coverage Ratios (X)

Silver Touch Technologies Ltd Valuation Ratios

Fair Value / Intrinsic Value of Silver Touch Technologies Ltd

Fair Value: ₹538.75

The stock is overvalued by 23.36% compared to the current price ₹703

*Investments are subject to market risks

Strength and Weakness of Silver Touch Technologies Ltd

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -30.67, which is a positive sign.
  2. The company has higher reserves (59.50 cr) compared to borrowings (11.80 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (159.40 cr) and profit (9.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 8.38 and average Dividend Yield of 6.09%.
  2. The stock has a low average ROCE of 12.78%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 94.67, which may not be favorable.

Should I Buy Silver Touch Technologies Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Silver Touch Technologies Ltd:
    1. Net Profit Margin: 5.93%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.95% (Industry Average ROCE: 24.48%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 7.99
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 2.40
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 63.9 (Industry average Stock P/E: 29.08)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.11
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Silver Touch Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE