Accel (517494)

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹22.77, Accel is a tiny ₹131 Cr software consulting firm. Let me apply the Graham test. A decent business earns high returns on capital; Accel’s ROE is only 3.71% and ROCE is 7.93%. That tells me this is not a franchise with pricing power. The Piotroski F-Score of 7/9 suggests the balance sheet is not deteriorating, and a 2.54% dividend gives some patient income. But the latest quarter sales of ₹40 Cr produced essentially nil net profit — a reminder that reported annual profit growth of 58% can come off a very low base. Sales growth is just 5.25%. At 28.25 times earnings and 1.81 times book, the market is paying a rich price for a slow grower with mediocre returns. The PEG ratio of 0.89 looks cheap only if that 58% growth is sustainable, which is doubtful. A Graham investor would not chase this without a margin of safety. I would want to see consistent quarterly profitability, higher ROE, and evidence of a durable customer base before assigning any moat. Software consulting is competitive, and Accel's scale is small. At a market cap of ₹131 Cr, even a small contract win can move the needle, but a small setback can also destroy value. The dividend is nice, but a high P/E and near-zero current earnings leave little room for error. I would keep it on a watchlist, not buy it at its 52-week high.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer