Accel Receives 'Hold' Rating from MarketsMOJO, Shows Strong Long-Term Growth

Accel, a microcap IT hardware company, has recently received a 'Hold' rating from MarketsMOJO on October 25, 2024. This upgrade is based on the company's healthy long-term growth, with an annual growth rate of 83.83% in net sales and 38.77% in operating profit. In addition, the company's profits have risen by 23.6% in the past year, while the stock has generated a return of 5.25%.
One of the key factors contributing to the 'Hold' rating is the company's attractive valuation, with a ROCE of 7.8 and an enterprise value to capital employed ratio of 1.5. This indicates that the stock is trading at a discount compared to its historical valuations. However, the company has a high debt to EBITDA ratio of 7.35 times, which may affect its ability to service debt.

Accel's majority shareholders are its promoters, and the company has been able to generate a return on equity of 3.51%, indicating low profitability per unit of shareholders' funds. The stock is currently in a mildly bearish range, with a deteriorating technical trend since October 21, 2024, and has generated -5.83% returns since then. The MACD and Bollinger Band technical factors also suggest a bearish trend.

In the last year, Accel has underperformed the market, with a return of 5.25% compared to the market's (BSE 500) returns of 33.56%. While the company's long-term growth prospects seem positive, investors may want to hold off on investing in Accel until its debt situation improves and the technical trend turns bullish.