Up 725% in five years: Small-cap stock to be in focus on Monday after ₹5.12 crore order win

Multibagger small-cap stock Silver Touch Technologies is likely to be on investors' radar on Monday, September 14, after the company announced a fresh order win. In a post-market regulatory filing on Friday, the company said it had secured an order from Gujarat Urja Vikas Nigam Limited (GUVNL).

The order is for providing comprehensive management and support for computer servers, storage systems, SAN switches, tape libraries, and backup architecture for a period of one year. The contract is worth ₹5.12 crore, according to the regulatory filing.

"This engagement covers the computer servers, storage systems, SAN switches, tape library, and backup architecture with Silver Touch committed to ensuring application uptime services at a 99% SLA that empower GUVNL's e-Urja platform, the ERP backbone connecting the state's electricity generation, transmission, and distribution utilities, and serving over a crore consumers," the company said in its filing.

Silver Touch Technologies has been engaged by Gujarat Urja Vikas Nigam Limited—the Government of Gujarat's holding company overseeing the generation, transmission, and distribution of power across Gujarat under the state's Energy and Petrochemicals Department—to provide comprehensive management and OEM-authorised support for the core IT infrastructure underpinning GUVNL's enterprise systems.

The order win comes as Silver Touch Technologies continues to execute on a marquee government portfolio spanning the Indian Navy, the Ministry of External Affairs, the Airports Authority of India, AIIMS New Delhi, and multiple state e-governance programs.

For the quarter ended June (Q1FY27), the company reported consolidated revenue of ₹78.02 crore, registering around 23.45% year-on-year growth, driven by continued execution across government and enterprise digital-transformation projects.

EBITDA nearly doubled to ₹17.04 crore, up 89% YoY, while the EBITDA margin expanded by around 782 basis points to 22.21%, supported by software-led operating leverage. Profit after tax (PAT) surged 148% YoY to ₹10. crore, with the PAT margin improving by around 656 basis points to 13%.

Five years of strong returns

Barring the recent weakness, the stock had largely maintained a strong upward trend in recent years, establishing itself as one of the biggest wealth creators in the Indian stock market.

Over the last five years, the stock has risen from ₹18.50 apiece to its latest closing price of ₹152.50, translating into a massive gain of around 725%.

The stock delivered positive returns in each of the last five calendar years, with 2022 emerging as the strongest year, when it surged 135%, followed by another 100% gain in 2023.

The winning streak continued this year, with the stock hitting a fresh record high of ₹216.80 apiece. However, volatility in the broader market triggered a sharp correction, with the stock subsequently falling around 30% from its peak.

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