Accel Experiences Revision in Its Score Amid Strong Growth and Market Challenges

Accel, a microcap player in the IT hardware sector, has recently seen an adjustment in its evaluation by MarketsMOJO, which has upgraded the stock to a 'Hold' status. This revision comes on the heels of the company demonstrating robust long-term growth, with net sales increasing at an impressive annual rate of 79.28% and operating profit rising by 43.50%.
Accel has reported positive results for the last three consecutive quarters, showcasing a strong operating cash flow of Rs 23.45 crore and a higher profit after tax of Rs 2.98 crore for the nine-month period. The company's return on capital employed stands at 7.7, indicating a very attractive valuation, particularly as it trades at a discount compared to its historical averages.

Despite these positive indicators, Accel faces challenges, including a high debt-to-EBITDA ratio of 7.35 times, which suggests a low ability to service its debt. Additionally, the stock has underperformed the broader market over the past year, generating a return of just 2.54% compared to the BSE 500's 16.59%. Notably, Accel has been added to MarketsMOJO's list, reflecting its evolving market position.