Why is Accel falling/rising?
As of 10-Jul, Accel Ltd's stock price is at 16.15, showing a short-term increase but a significant year-over-year decline of -28.22% in returns and a 47% drop in profits, indicating ongoing challenges despite recent positive performance. The company's high debt to EBITDA ratio further complicates its financial outlook.
As of 10-Jul, Accel Ltd's stock price is currently at 16.15, reflecting an increase of 0.15 or 0.94%. Today's performance indicates that the stock has outperformed its sector by 1.64%, with a notable rise in investor participation, as evidenced by a 100.21% increase in delivery volume compared to the 5-day average. However, despite this positive movement, the stock has experienced a significant decline over the past year, generating returns of -28.22%, while profits have fallen by 47%. The company's return on capital employed (ROCE) stands at 6.2, suggesting an attractive valuation relative to its peers, yet it also faces challenges with a high debt to EBITDA ratio of 7.52 times, indicating a low ability to service its debt.In the broader market context, Accel's short-term return of +0.31% over the past week contrasts with a slight decline of -0.06% in the Sensex, suggesting that the stock is performing better than the overall market in the short term. However, the stock's long-term performance remains concerning, with a decline of -26.62% year-to-date compared to a positive return of +6.46% for the Sensex. This consistent underperformance against the benchmark over the last three years highlights the challenges Accel faces, despite its recent price increase, as it struggles with weak long-term fundamentals and significant profit declines.
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