Silver Touch Technologies Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Fair Valuation

Silver Touch Technologies, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last 9 consecutive quarters, with a growth of 51.97% in PAT(HY) and 44.64% in NET SALES(Q). Additionally, the company has a low Debt to Equity ratio (avg) at 0 times and a high DEBTORS TURNOVER RATIO(HY) at 3.27 times.
Technically, the stock is in a Mildly Bullish range and the trend has improved from Sideways on 04-Nov-24. The RSI has also been Bullish since 04 Nov 2024, indicating a positive sentiment towards the stock. With a ROCE of 20.5, the stock is fairly valued and is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 26.96%, while its profits have risen by 65%. The PEG ratio of the company is 0.8, further supporting its fair valuation.

However, the company has a low ROE of 7.82%, indicating poor management efficiency and profitability per unit of shareholders' funds. The long term growth of the company has also been poor, with Net Sales growing at an annual rate of 31.75% and Operating profit at -0.25% over the last 5 years.

It is worth noting that despite being a microcap company, domestic mutual funds hold only 0% of the company. This could signify that either they are not comfortable with the current price or they have not conducted in-depth research on the company. Investors should keep this in mind while making their investment decisions.

Overall, Silver Touch Technologies has shown positive results and has a fair valuation, but its management efficiency and long term growth may be a cause for concern. Investors should carefully consider these factors before making any investment decisions.