Accedere downgraded to 'Sell' by MarketsMOJO due to weak fundamentals and high valuation.

Accedere, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 18, 2024. This decision was based on the company's weak long-term fundamental strength, with a -10.00% CAGR growth in operating profits over the last 5 years. Additionally, Accedere's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of -0.11. The company has also reported losses, resulting in a negative return on capital employed (ROCE).
Furthermore, with a ROE of 1.9, Accedere's valuation is considered to be very expensive, with a price to book value of 10.9. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 40.63%, its profits have fallen by -25%.

On a positive note, Accedere reported its highest PBDIT(Q) at Rs 0.18 cr, PBT LESS OI(Q) at Rs 0.14 cr, and PAT(Q) at Rs 0.10 cr in September 2024. Technically, the stock is in a mildly bullish range, with its MACD and OBV technical factors also showing a bullish trend.

The majority shareholders of Accedere are its promoters, indicating their confidence in the company's future prospects. In fact, the stock has been performing well in the long term as well as the near term, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months. However, considering the recent downgrade by MarketsMOJO, investors may want to carefully evaluate their investment in Accedere.