Silver Touch Technologies Limited

Technology — Information Technology Services · NSE

₹129.65+₹0.39 (+0.30%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Silver Touch Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Silver Touch Technologies Limited provides information technology solutions in India, the United Kingdom, the United States, Canada, and France.

IndustryInformation Technology Services

SectorTechnology

Employees1,030

Annual revenue₹342 Cr

How does it make money?

Turns over ₹342 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 1,030 employees supports ₹33.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹33.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 27.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +109% while net margin moved +76% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+109%

Margin effect+76%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.83 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.4x

3Y Median

90.7x

40 monthly readings · mean 352.5x · range 4.6x–1016.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 90.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 138% above the peer median of 16.5x.

vs. its own history

Cheap

90.7x median over 40 months · -57%

vs. sector peers

Expensive

16.5x median of 4 peers · +138%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.7x

PEG

0.72

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 11.7% to 18.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 10.2% to 21.1%.
Return on capital is rising
ROCE has improved from 13.6% to 27.1%.
High return on capital employed
ROCE of 27.1% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 350% over 3 years, from ₹11 Cr to ₹49 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.7% to 18.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 57% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹17 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 138% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 21% a year✓ 27.8% CAGR
Latest reported year was 22.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹1,644 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.4x

Fair

Fairly valued against the generic band

P/B Ratio

9.71x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹3.29

Profitable

Profitable on a per-share basis

ROE

21.1%

Strong

Strong capital efficiency

ROCE

27.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

22.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

148.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

17.4%

Good

Healthy core-business profitability

Net Margin

11.7%

Good

Strong bottom-line conversion

Current Ratio

1.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.83

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

139.4 / 163.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹164 Cr	₹224 Cr	₹288 Cr	₹342 Cr	+27.8%
EBITDA	₹19 Cr	₹27 Cr	₹39 Cr	₹63 Cr	+48.8%
EBITDA Margin	11.7%	12.1%	13.6%	18.5%	—
PAT (Net Profit)	₹10 Cr	₹16 Cr	₹22 Cr	₹36 Cr	+54.4%
EPS	₹0.77	₹1.27	₹17.5	₹28.17	+232.6%
ROE	10.2%	14.2%	16.6%	21.1%	—
ROCE	13.6%	17.2%	21.2%	27.1%	—
Total Debt	₹11 Cr	₹11 Cr	₹47 Cr	₹49 Cr	+65.1%
Free Cash Flow	-₹5 Cr	₹3 Cr	-₹3 Cr	₹17 Cr	—

🟢 Revenue has grown at 27.8% a year over 3 years.

🟢 EBITDA has grown at 48.8% a year over 3 years.

🟢 EBITDA Margin has risen from 11.7% to 18.5% over 3 years (+6.8 pts).

🟢 PAT (Net Profit) has grown at 54.4% a year over 3 years.

🟢 EPS has grown at 232.6% a year over 3 years.

🟢 ROE has risen from 10.2% to 21.1% over 3 years (+10.8 pts).

🟢 ROCE has risen from 13.6% to 27.1% over 3 years (+13.5 pts).

🔴 Total Debt has grown at 65.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹296 Cr

Total Liabilities

₹127 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹17 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.9%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

17 Aug 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed4 general

Here's Why We Think Silver Touch Technologies (NSE:SILVERTUC) Is Well Worth Watching

Simply Wall Street, 22 Aug

Silver Touch Technologies Ltd. Upper Circuit: Price and Key Data

Univest, 21 Sept

Silver Touch Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Is This AI Stock the Next Multibagger? Silver Touch Technologies Shares Jump 4% After RITES Order

APAC Media, 08 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Silver Touch Technologies promoter acquires 600 shares on market

scanx.trade, 01 Oct

Silver Touch Tech Reports Q1 Consolidated Net Profit Of ₹10 Crore Vs ₹4 Crore YoY

Sahi, 30 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑