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OVERVALUED

Silver Touch Technologies Limited

IT · NSE

↓ 197.4% vs fair value

52W Low

₹101

+18.0% from low

52W High

₹1,117

-89.4% from high

News sentiment (3 articles)

2 bull0 neutral1 bear

✦

Analyst Note

2d ago

Silver Touch Technologies trades at ₹118.6, significantly overvalued against a fair value of ₹39.88, implying a negative margin of safety of 186.9%. While the company demonstrates strong earnings growth of 109.4% year-on-year and improving ROCE at 21.2%, it carries substantial red flags including negative free cash flow of ₹3 Cr and a stretched PE of 45.6x, typical of expensive IT sector valuations. Earnings quality shows paper profits rather than cash conversion, and low confidence in valuation estimates adds uncertainty. This stock suits only aggressive growth investors comfortable with elevated valuations and cash flow concerns, not conservative or value-focused portfolios.

Valuation Gauge

OVERVALUED-197.4% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹119

Fair Value

₹40

Fair Value Analysis

₹40

Based on earnings growth potential for IT sector companies | Sector-expensive: P/E at 95th percentile vs sector peers. | ROCE improving (latest 21.5%) — capital allocation becoming more efficient. | COVID-resilient: PAT dropped from ₹11Cr (FY2019) to ₹1Cr (FY2021) during COVID but has fully recovered.

Low confidence

Growth Valuation

100% weight

₹40

Price vs Market

SILVERTUC

Nifty 50

Shareholding Pattern

Stock Health Score

Solid Fundamentals

6.2 / 10

Profitability

10/10

ROE of 21.4% is above the IT sector benchmark of 20% — strong returns

Debt & Leverage

10/10

D/E ratio of 0.3x is well within the IT sector norm of 0.8x — strong balance sheet

Valuation vs Peers

1/10

P/E of 91.5x is 1.7x the IT sector median of 53x — expensive

Cash Flow

1/10

Negative FCF of ₹-3 Cr — company is consuming more cash than it generates

Earnings Growth

10/10

5yr EPS CAGR of 51.1% is well above the IT sector average of 14.2% — strong growth

Dividend

4/10

Dividend yield of 0.0% is symbolic — low but positive

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

-1.5%

Free cash flow / market cap

Revenue Growth (YoY)

+29.7%

Year-on-year revenue change

Profit Growth (YoY)

+120.0%

Year-on-year PAT change

Operating Cash Flow

₹-3 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹1.3

P/E Ratio

91.5x

P/B Ratio

10x

ROE

21.4%

ROCE

21.3%

Debt / Equity

0.33x

Beta

0.04

Div Yield

FCF (Cr)

₹-3 Cr

Revenue (Cr)

₹288 Cr

EPS Growth 5Y

51.1%

Mkt Cap (Cr)

₹1,451 Cr

52W High

₹1,117.5

52W Low

₹100.5

Book Value/Share

₹11.5

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹331 Cr	₹57 Cr	17.0%	₹32 Cr	₹2.51
2025-03-31	₹288 Cr	₹38 Cr	13.0%	₹22 Cr	₹1.75
2024-03-31	₹224 Cr	₹25 Cr	11.0%	₹16 Cr	₹1.26
2023-03-31	₹164 Cr	₹17 Cr	10.0%	₹10 Cr	₹0.76
2022-03-31	₹140 Cr	₹12 Cr	8.0%	₹6 Cr	₹0.51
2021-03-31	₹152 Cr	₹4 Cr	3.0%	₹1 Cr	₹0.08
2020-03-31	₹190 Cr	₹13 Cr	7.0%	₹5 Cr	₹0.41
2019-03-31	₹211 Cr	₹20 Cr	9.0%	₹11 Cr	₹0.83
2018-03-31	₹172 Cr	₹17 Cr	10.0%	₹8 Cr	₹0.66
2017-03-31	₹123 Cr	₹12 Cr	10.0%	₹4 Cr	₹0.72
2016-03-31	₹140 Cr	₹12 Cr	9.0%	₹3 Cr	₹0.55
2015-03-31	₹117 Cr	₹13 Cr	11.0%	₹3 Cr	₹0.47

Compounded Growth Rates

Sales Growth

3Y+26.4%

5Y+16.8%

10Y+9.0%

Profit Growth

3Y+47.4%

5Y+100.0%

10Y+26.7%

EPS Growth

3Y+48.9%

5Y+99.2%

10Y+16.4%

Peer Comparison

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
DOLATALGO Dolat Algotech Limited	₹72	₹550.4	+86.9%	10.3	20.4%	UNDERVALUED
CEINSYS Ceinsys Tech Limited	₹995	₹4,355.2	+77.2%	16.5	25.5%	UNDERVALUED
SHILCTECH Shilchar Technologies Limited	₹4,058.1	₹14,624.9	+72.3%	24.6	43.9%	UNDERVALUED
KELLTONTEC Kellton Tech Solutions Limited	₹15.2	₹50.5	+70.0%	8.7	12.7%	UNDERVALUED
ONWARDTEC Onward Technologies Limited	₹232	₹669.5	+65.3%	11.6	19.3%	UNDERVALUED
RADHIKAJWE Radhika Jeweltech Limited	₹57.9	₹159.1	+63.6%	8.3	18.7%	UNDERVALUED
CIGNITITEC Cigniti Technologies Limited	₹1,202.5	₹2,990.5	+59.8%	11	26.8%	UNDERVALUED
DUCON Ducon Infratechnologies Limited	₹3.3	₹6.6	+49.2%	7.7	10.1%	UNDERVALUED