Why is Accel falling/rising?
As of 22-Aug, Accel Ltd's stock price is 16.37, up 6.3% recently, but it has a year-to-date decline of 25.62% and faces significant financial challenges, including a high Debt to EBITDA ratio and a 41.8% drop in profits. Despite short-term gains, its long-term performance remains weak compared to market indices.
As of 22-Aug, Accel Ltd's stock price is currently at 16.37, reflecting an increase of 0.97 or 6.3%. The stock has been gaining for the last three days, with a total return of 6.64% during this period, and it has outperformed its sector by 5.37%. Despite a year-to-date decline of 25.62% and a one-year drop of 28.73%, the stock is trading at a discount compared to its peers' average historical valuations. However, the company faces challenges, including a high Debt to EBITDA ratio of 7.52 times and a significant drop in profits, which fell by 41.8% over the past year. The average Return on Capital Employed (ROCE) is low at 5.14%, indicating weak long-term fundamental strength.In the broader market context, Accel's short-term return of 3.41% over the past week significantly outpaces the Sensex, which has only increased by 0.88% during the same period. However, the stock's long-term performance remains concerning, as it has underperformed the BSE500 index over the last three years, one year, and three months. While the recent price increase may suggest a temporary positive sentiment among investors, the underlying financial weaknesses and declining profitability could hinder sustained growth in the future.
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