Accedere Receives 'Hold' Rating from MarketsMOJO, Stock Shows Bullish Trend

Accedere, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company's positive results in September 2024, with its PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 0.18 cr, Rs 0.14 cr, and Rs 0.10 cr respectively.
The stock is currently in a bullish range and its technical trend has improved from mildly bullish on 25-Nov-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV are contributing to the stock's bullish outlook.

Accedere's majority shareholders are its promoters, indicating their confidence in the company's performance. The stock has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 49.52% in the last year.

However, the company's long-term fundamental strength is weak with a -10.00% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of -0.11. The company has also reported losses, resulting in a negative ROCE.

With a ROE of 1.9, the stock is currently trading at a very expensive valuation with a 11.3 price to book value. However, it is currently trading at a discount compared to its average historical valuations. Despite generating a return of 49.52% in the last year, the company's profits have fallen by -25%.

Overall, while Accedere's recent performance has been positive, its long-term fundamentals and valuation raise some concerns. Investors are advised to hold onto their positions for now and monitor the company's future performance closely.