Why is Accel falling/rising?

Aug 25 2025 09:15 PM IST
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As of 25-Aug, Accel Ltd's stock price is 16.40, showing a slight increase but a year-to-date decline of 25.49%. Despite recent short-term gains, long-term fundamentals are weak due to significant profit drops and high debt levels, leading to cautious investor sentiment.
As of 25-Aug, Accel Ltd's stock price is currently at 16.40, reflecting a slight increase of 0.03 or 0.18%. The stock has shown a strong performance recently, gaining 6.84% over the last four days and outperforming its sector by 0.58% today. Despite this positive short-term trend, the stock has a year-to-date decline of 25.49% and a one-year return of -29.34%, indicating significant long-term challenges. The company's return on capital employed (ROCE) is relatively low at 6.2, and it is trading at a discount compared to its peers, which may attract some investors. However, the company has also faced a substantial drop in profits, with a 41.8% decrease over the past year, contributing to a weak long-term fundamental outlook.

In the broader market context, Accel Ltd has outperformed the Sensex in the short term, with a 5.74% return over the past week compared to the benchmark's 0.45%. However, the stock's long-term performance has been underwhelming, with a three-year return of -5.20% against the Sensex's 38.90%. The company's high debt-to-EBITDA ratio of 7.52 times raises concerns about its ability to service debt, further complicating its financial health. Overall, while there are some positive indicators in the short term, the long-term fundamentals and recent profit declines suggest that investors remain cautious about the stock's future performance.
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