Why is Accel falling/rising?

Aug 20 2025 09:16 PM IST
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As of 20-Aug, Accel Ltd's stock price is at 15.37, showing a slight increase but underperforming its sector and experiencing a significant year-to-date decline of 30.17%. The stock's bearish trend, weak long-term fundamentals, and substantial profit decline indicate a challenging outlook despite its attractive valuation metrics.
As of 20-Aug, Accel Ltd's stock price is currently at 15.37, reflecting a slight increase of 0.02 or 0.13%. Despite this minor uptick, the stock has underperformed its sector by 0.8% today and has experienced a trend reversal after two consecutive days of decline. Over the past week, the stock has dropped by 1.47%, and it has seen a significant decline of 30.17% year-to-date. The stock is trading below all its moving averages, indicating a bearish trend. Additionally, while the stock's valuation appears attractive with a return on capital employed (ROCE) of 6.2 and a low enterprise value to capital employed ratio, it has suffered a substantial profit decline of 41.8% over the past year, which negatively impacts investor sentiment.

In the broader market context, the Sensex has gained 1.64% over the past week, contrasting sharply with Accel's recent performance. The stock's long-term fundamentals are weak, evidenced by a high debt to EBITDA ratio of 7.52 times and a low average ROCE of 5.14%. This has contributed to its underperformance against the BSE500 over various time frames, including the last three years and one year, where it has generated returns of -34.23%. The combination of these factors suggests that while there may be short-term fluctuations in price, the overall outlook for Accel remains challenging in the context of both its performance and the broader market.
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