Accel Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth and Attractive Valuation

Accel, a microcap IT hardware company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company's positive results in June 2024, with a higher PAT (HY) of Rs 2.20 crore. The company has shown healthy long-term growth, with an annual net sales growth rate of 83.83% and operating profit growth of 43.50%.
Technically, the stock is currently in a mildly bullish range, with an improved trend from mildly bearish on October 1, 2024. The stock has also generated a return of -5.11% since then. The MACD and KST technical factors are also bullish, indicating a positive outlook for the stock.

Accel also has an attractive valuation, with a ROCE of 7.8 and an enterprise value to capital employed ratio of 1.5. The stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 12.94%, its profits have risen by 23.6%, resulting in a PEG ratio of 1.5.

However, the company's majority shareholders are promoters, which may raise concerns for some investors. Additionally, Accel has a high debt to EBITDA ratio of 7.35 times, indicating a low ability to service debt. The company has also underperformed the market in the last year, with a return of 12.94% compared to the market's return of 33.39%.

Overall, Accel's recent upgrade to a 'Hold' rating by MarketsMOJO is a positive sign for the company. With its healthy long-term growth and attractive valuation, it may be a good option for investors to consider. However, the high debt and underperformance in the market may be areas of concern for some investors.