NSEI:SILVERTUC

Stock Analysis Report

Silver Touch Technologies

Executive Summary

Silver Touch Technologies Limited provides information technology (IT) solutions in India and internationally.

Risk Analysis

Does not have a meaningful market cap (₹1B)



Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has Silver Touch Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SILVERTUC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

SILVERTUC

-3.0%

IN IT

-3.9%

IN Market


1 Year Return

-8.9%

SILVERTUC

3.5%

IN IT

4.5%

IN Market

Return vs Industry: SILVERTUC underperformed the Indian IT industry which returned 3.5% over the past year.

Return vs Market: SILVERTUC underperformed the Indian Market which returned 4.5% over the past year.


Shareholder returns

SILVERTUCIndustryMarket
7 Day-4.3%-3.0%-3.9%
30 Day-2.6%-2.6%-3.9%
90 Day-5.0%4.8%-2.1%
1 Year-8.5%-8.9%6.2%3.5%6.4%4.5%
3 Yearn/a63.8%54.3%19.4%12.8%
5 Yearn/a49.2%35.5%28.2%16.6%

Price Volatility Vs. Market

How volatile is Silver Touch Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Silver Touch Technologies undervalued compared to its fair value and its price relative to the market?

14.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SILVERTUC (₹112) is trading above our estimate of fair value (₹6.33)

Significantly Below Fair Value: SILVERTUC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SILVERTUC is poor value based on its PE Ratio (14.9x) compared to the IT industry average (10.6x).

PE vs Market: SILVERTUC is poor value based on its PE Ratio (14.9x) compared to the Indian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SILVERTUC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SILVERTUC is overvalued based on its PB Ratio (1.7x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Silver Touch Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.4%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Silver Touch Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Silver Touch Technologies performed over the past 5 years?

27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SILVERTUC has high quality earnings.

Growing Profit Margin: SILVERTUC's current net profit margins (4.6%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: SILVERTUC's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: SILVERTUC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SILVERTUC had negative earnings growth (-3%) over the past year, making it difficult to compare to the IT industry average (7.2%).


Return on Equity

High ROE: SILVERTUC's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Silver Touch Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SILVERTUC's short term assets (₹1.3B) exceed its short term liabilities (₹769.5M).

Long Term Liabilities: SILVERTUC's short term assets (₹1.3B) exceed its long term liabilities (₹47.6M).


Debt to Equity History and Analysis

Debt Level: SILVERTUC's debt to equity ratio (23%) is considered satisfactory.

Reducing Debt: SILVERTUC's debt to equity ratio has reduced from 49.6% to 23% over the past 5 years.

Debt Coverage: SILVERTUC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SILVERTUC's interest payments on its debt are well covered by EBIT (21.1x coverage).


Balance Sheet

Inventory Level: SILVERTUC has a low level of unsold assets or inventory.

Debt Coverage by Assets: SILVERTUC's debt is covered by short term assets (assets are 7x debt).


Next Steps

Dividend

What is Silver Touch Technologies's current dividend yield, its reliability and sustainability?

0.45%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SILVERTUC's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.62%).

High Dividend: SILVERTUC's dividend (0.45%) is low compared to the top 25% of dividend payers in the Indian market (2.69%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SILVERTUC has been paying a dividend for less than 10 years.

Growing Dividend: SILVERTUC has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.7%), SILVERTUC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average board tenure


CEO

Vipul Thakkar (49yo)

₹4,800,000

Compensation

Mr. Vipul Haridas Thakkar serves as the Chairman of the Board and Managing Director of Silver Touch Technologies Ltd. He is a Computer Engineer with more than 14 year experience in IT. He having started hi ...


CEO Compensation Analysis

Compensation vs Market: Vipul's total compensation ($USD66.94K) is above average for companies of similar size in the Indian market ($USD50.27K).

Compensation vs Earnings: Vipul's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Vipul Thakkar
Chairman & MD0yrs₹4.80m24.64% 357.7m
Palak Shah
Whole Time Director & CFO0yrs₹4.80m6.05% 87.9m
Jignesh Patel
Director of Operations & Whole Time Director0yrs₹4.80m24.88% 361.3m
Minesh Doshi
Director of Technical & Whole Time Director2.8yrs₹4.80m18.31% 265.8m
Himanshu Jain
Director of North India Operations & Whole Time Director9.6yrs₹4.53m0.24% 3.4m
Vijaykumar Shah
Director of SAP & Whole Time Director2.7yrs₹2.69mno data
Gayatri Doctor
Non Executive Independent Director5.8yrsno datano data
Ronak Shah
Non Executive Independent Director11.3yrsno datano data
Harivadan Thaker
Non Executive Independent Director11.3yrsno datano data

7.7yrs

Average Tenure

49yo

Average Age

Experienced Board: SILVERTUC's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SILVERTUC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Silver Touch Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Silver Touch Technologies Limited
  • Ticker: SILVERTUC
  • Exchange: NSEI
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹1.452b
  • Shares outstanding: 12.68m
  • Website: https://www.silvertouch.com

Location

  • Silver Touch Technologies Limited
  • Saffron Tower
  • 2nd Floor
  • Ahmedabad
  • Gujarat
  • 380006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SILVERTUCNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2018

Biography

Silver Touch Technologies Limited provides information technology (IT) solutions in India and internationally. The company offers solutions in the areas of software development, outsourcing, ERP solutions, security operations center, e-governance solutions, system integration, and mobility solutions. It also provides consulting services in information security, cloud computing, storage and backup, green data centers, and application performance optimization. The company was formerly known as Silver Touch Computers Limited and changed its name to Silver Touch Technologies Limited in October 2004. Silver Touch Technologies Limited was founded in 1992 and is headquartered in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 13:19
End of Day Share Price2020/02/28 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.