Accel Faces Financial Struggles Amid IT Hardware Sector Decline and High Debt Levels

Mar 11 2025 10:06 AM IST
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Accel, a microcap in the IT Hardware sector, has reached a new 52-week low amid ongoing volatility. The company faces financial challenges, including a high Debt to EBITDA ratio and low profitability. Despite recent downturns in sales and profit, Accel has shown strong long-term growth potential.
Accel, a microcap player in the IT Hardware sector, has experienced significant volatility, hitting a new 52-week low of Rs. 16.51 today. This decline marks a continuation of a downward trend, with the stock falling by 10.47% over the past two days. Accel's performance aligns with the broader IT Hardware industry, which has seen a decrease of 3.01%.

The company's financial metrics reveal challenges, including a high Debt to EBITDA ratio of 4.65 times, indicating difficulties in servicing debt. Accel's Return on Equity stands at a modest 3.53%, reflecting low profitability relative to shareholders' funds. Recent quarterly results have shown a downturn, with net sales at Rs. 38.27 crore and a PAT of Rs. 0.27 crore, both at their lowest levels.

Despite these challenges, Accel has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 83.21%. The stock is currently trading at a discount compared to its peers, with a PEG ratio of 0.5. However, its one-year performance remains concerning, with a decline of 23.34%, underperforming the BSE 500 index.
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