Accelya Solution (ACCELYA)

FairStock Score: 25/100 — RISKY

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

Key Financials

Strengths

• ROE of 41.21% and ROCE of 53.61% indicate a historically high-return, capital-efficient business.
• Debt/Equity of only 0.33 keeps the balance sheet manageable.
• Promoter holding of 74.66% aligns controlling owners with minority shareholders.
• Dividend yield of 7.52% provides a high income return, if sustainable.
• Trailing P/E of 15.77 is not demanding, provided earnings stop falling.

Concerns

• Profit growth of -39.77% and latest quarter net profit of ₹14 Cr on sales of ₹133 Cr show serious earnings deterioration.
• Piotroski F-Score of 3/9 and FairStock Score of 25/100 point to weak financial health and high risk.
• P/B of 6.78 against book value of ₹176.85 leaves no tangible asset cushion.
• Reported free cash flow of ₹130.40 lakh Cr is internally inconsistent with a ₹1,786 Cr market cap and cannot be relied upon as given.

AI Analysis

At ₹1,199.80, Accelya has a market cap of ₹1,786 Cr and a trailing P/E of 15.77. On the surface, that looks reasonable for a software/consulting company. But Graham taught me to look behind the earnings, and here the picture is less pleasant. Sales are flat at -0.19%, profit has fallen 39.77%, and the latest quarter shows just ₹14 Cr net profit on ₹133 Cr sales, a 10.5% margin. The reported free cash flow of ₹130.40 lakh Cr is inconsistent with the company's size; I would not rely on it until clarified. The high ROE of 41.21% and ROCE of 53.61% tell me this has been a fine franchise with a historical moat. Debt/equity of 0.33 is manageable. A 74.66% promoter holding and a 7.52% dividend yield give some comfort. Yet the Piotroski F-Score of 3/9 is a red flag: financial strength is deteriorating, and the FairStock Score of 25/100 says risky. With P/B at 6.78 against book value of ₹176.85, I have no asset-value margin of safety. The earnings yield is roughly 6.3% (100/15.77), but that is only meaningful if earnings stabilize; a 39.77% decline is not stabilization. The dividend may be a trap if net profit keeps falling. I would not call this a wonderful company at a fair price today. It may be a potential turnaround, but I need evidence of profit recovery and credible cash flow before buying. The price is near the lower end of its 52-week range, but a low price is not the same as a bargain. My verdict: wait, watch, require proof.

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