Why is Accel falling/rising?
As of 18-Sep, Accel Ltd's stock price is at 16.40, up 1.61% recently, but it has a year-to-date decline of 25.49% and a one-year drop of 37.88%. Despite recent gains, its long-term performance is weak, with high debt levels and declining profits raising concerns about financial stability.
As of 18-Sep, Accel Ltd's stock price is currently at 16.40, reflecting an increase of 0.26 or 1.61%. The stock has shown a positive trend recently, gaining for the last two days with a total return of 1.99%. It has outperformed its sector by 1.93% today, and the delivery volume has significantly increased by 48.16% compared to the five-day average, indicating rising investor participation. However, despite a 5.74% increase over the past month, the stock has underperformed in the long term, with a year-to-date decline of 25.49% and a one-year drop of 37.88%. The company has a low Return on Capital Employed (ROCE) of 6.2, and its profits have decreased by 41.8% over the past year, contributing to a perception of weak long-term fundamental strength.In the broader market context, while Accel's recent performance has been positive, it still lags behind the benchmark Sensex, which has gained 1.80% over the past week and 2.14% over the last month. The stock's long-term performance is concerning, as it has consistently underperformed against the benchmark over the last three years, with a significant decline in returns compared to the Sensex's modest growth. The high Debt to EBITDA ratio of 7.52 times further complicates its financial stability, suggesting challenges in servicing debt, which may deter potential investors despite the current uptick in price.
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