Accel (517494)
Slow GrowerScore breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 1/1
Key Financials
| Current Price | ₹22.77 |
| Market Cap | ₹131.09 Cr |
| P/E Ratio | 28.25 |
| ROCE | 7.93% |
| ROE | 3.71% |
| Dividend Yield | 2.54% |
| Profit Growth | 58.02% |
| Debt/Equity | — |
| Sales Growth | 5.25% |
| 52-Week Range | ₹8.91 — ₹22.77 |
| Sector | IT - Software |
| Book Value | ₹12.56 |
Strengths
- Piotroski F-Score of 7/9 indicates broadly sound financials
- Dividend yield of 2.54% provides some income support
- Book value of ₹12.56 and P/B of 1.81 offer a tangible asset base
- Profit growth of 58.02% shows recent earnings improvement, though from a low base
- Sales growth of 5.25% is positive, if modest
Concerns
- ROE of 3.71% and ROCE of 7.93% reflect weak capital efficiency
- Latest quarter net profit of roughly ₹0 Cr on ₹40 Cr sales shows negligible earnings power
- P/E of 28.25 is expensive for a business with just 5.25% sales growth
- Promoter holding is not disclosed, and debt/equity is unavailable, reducing transparency
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer