Accel Receives 'Hold' Rating from MarketsMOJO After Positive Results and Promising Growth

Accel, a microcap IT hardware company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company's positive results in June 2024, with a higher PAT (HY) of Rs 2.20 crore. The company has shown healthy long-term growth, with an annual growth rate of 83.83% in net sales and 43.50% in operating profit.
Despite these positive results, the technical trend for Accel is currently sideways, indicating no clear price momentum. However, the trend has improved from mildly bearish on August 28, 2024, and has generated a return of 1.38% since then.

Accel also has an attractive valuation with a ROCE of 7.8 and an enterprise value to capital employed ratio of 1.5. 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 6.68%, its profits have risen by 23.6%, resulting in a PEG ratio of 1.5.

The majority shareholders of Accel are the promoters, indicating their confidence in the company. However, the company has a high debt to EBITDA ratio of 7.35 times, which may affect its ability to service debt. Additionally, Accel has underperformed the market in the last year, with a return of only 6.68%, compared to the market's return of 39.22%.

Overall, Accel has shown promising growth and has received a 'Hold' rating from MarketsMOJO. However, investors should consider the company's high debt and underperformance in the market before making any investment decisions.