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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 517494 | NSE: ACCEL

Accel Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:14 pm

Market Cap 128 Cr.
Current Price 22.2
High / Low35.5/18.6
Stock P/E32.6
Book Value 11.4
Dividend Yield1.35 %
ROCE9.52 %
ROE6.23 %
Face Value 2.00
PEG Ratio2.72

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Accel Ltd

Competitors of Accel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.898.5/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.8 Cr. 186245/11031.3 16.80.54 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 59.8 Cr. 17.427.0/16.2181 11.20.00 %%% 10.0
First Fintec Ltd 8.80 Cr. 8.4610.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average41,321.35 Cr716.0491.12122.740.66%18.02%18.80%6.94

All Competitor Stocks of Accel Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales22.0827.8129.5432.2331.7834.4941.0749.3036.6539.0641.5149.8739.38
Expenses18.6824.5125.7030.1428.2829.9835.2045.6632.1535.8136.5545.5635.88
Operating Profit3.403.303.842.093.504.515.873.644.503.254.964.313.50
OPM %15.40%11.87%13.00%6.48%11.01%13.08%14.29%7.38%12.28%8.32%11.95%8.64%8.89%
Other Income0.420.611.952.650.480.310.283.660.130.820.320.240.96
Interest1.401.381.332.421.461.721.781.841.801.761.861.751.76
Depreciation1.831.801.561.711.631.851.881.941.831.761.861.431.48
Profit before tax0.590.732.900.610.891.252.493.521.000.551.561.371.22
Tax %-94.92%28.77%13.10%-180.33%0.00%23.20%32.93%119.60%1.00%40.00%26.28%37.23%24.59%
Net Profit1.140.522.531.700.890.971.67-0.700.980.331.150.860.93
EPS in Rs0.230.120.460.290.160.180.30-0.120.180.070.210.160.18

Last Updated: October 7, 2024, 8:47 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:10 pm

MonthMar 2008Mar 2009Mar 2010Mar 2011Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales453919256871571112157167170
Expenses44392324101210196899138149154
Operating Profit1-0-51-4-4-3-4313181816
OPM %3%-0%-25%5%-69%-57%-51%-27%4%12%12%11%9%
Other Income719231210166412
Interest2422110147777
Depreciation3234222167777
Profit before tax3-5-1-4-445-6-25845
Tax %41%-1%19%0%0%0%0%0%-48%-22%65%26%
Net Profit2-5-1-4-445-6-16333
EPS in Rs1.88-4.65-1.28-3.52-3.174.690.90-0.97-0.141.030.490.570.62
Dividend Payout %0%0%0%0%0%44%0%0%0%29%61%52%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2008-20092009-20102010-20112017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-350.00%80.00%-300.00%200.00%25.00%-220.00%83.33%700.00%-50.00%0.00%
Change in YoY Net Profit Growth (%)0.00%430.00%-380.00%500.00%-175.00%-245.00%303.33%616.67%-750.00%50.00%

Accel Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2008-2009 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:90%
3 Years:33%
TTM:2%
Compounded Profit Growth
10 Years:%
5 Years:24%
3 Years:41%
TTM:70%
Stock Price CAGR
10 Years:11%
5 Years:35%
3 Years:18%
1 Year:8%
Return on Equity
10 Years:%
5 Years:1%
3 Years:6%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:00 pm

MonthMar 2008Mar 2009Mar 2010Mar 2011Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11111111111111111111121212
Reserves2-3-4-8222853486878515454
Borrowings213127256126257271707471
Other Liabilities89510187374940515147
Total Liabilities4349393957577391201200184190183
Fixed Assets12162117171344468978919186
CWIP2129001203741011
Investments3310930005556
Other Assets26291513324128257476889290
Total Assets4349393957577391201200184190183

Reserves and Borrowings Chart

Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2011Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-3-099-3-174-3711723
Cash from Investing Activity +-5-5-2-6115-12-21-58-3-8-9
Cash from Financing Activity +76-7-3124-31654-4-8-9
Net Cash Flow-010-1-021-11-83-516

Free Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2011Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-20.00-31.00-32.00-24.00-10.00-16.00-9.00-29.00-69.00-58.00-52.00-56.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2008Mar 2009Mar 2010Mar 2011Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days981061078378736352104899176
Inventory Days16436013879261585258
Days Payable14025810,2201,861191348160164159
Cash Conversion Cycle12220810783-10,004-1,70963-137-183-13-20-25
Working Capital Days13716716334-308307453154-14253430
ROCE %10%-4%-8%-7%-12%-6%-6%-2%7%11%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters72.40%72.35%71.94%71.94%71.94%71.94%71.62%71.62%71.62%71.62%71.62%71.62%
DIIs0.25%0.25%0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.24%
Government0.00%0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public27.35%27.40%27.81%27.81%27.80%27.80%28.12%28.12%28.12%28.12%28.11%28.12%
No. of Shareholders8,02310,18311,59511,78512,38012,90512,96012,97713,06613,18113,49313,710

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)0.570.501.03-0.14-0.97
Diluted EPS (Rs.)0.570.501.03-0.14-0.97
Cash EPS (Rs.)1.731.722.230.93-0.70
Book Value[Excl.RevalReserv]/Share (Rs.)6.9810.6615.5014.2710.56
Book Value[Incl.RevalReserv]/Share (Rs.)11.0810.6615.5014.2710.56
Revenue From Operations / Share (Rs.)29.0227.2119.4812.422.62
PBDIT / Share (Rs.)3.263.833.190.69-0.56
PBIT / Share (Rs.)2.062.561.98-0.37-0.82
PBT / Share (Rs.)0.731.380.84-0.27-0.96
Net Profit / Share (Rs.)0.530.451.03-0.14-0.96
NP After MI And SOA / Share (Rs.)0.570.491.03-0.14-0.96
PBDIT Margin (%)11.2214.0716.345.60-21.70
PBIT Margin (%)7.119.4110.16-3.04-31.67
PBT Margin (%)2.525.074.31-2.17-36.86
Net Profit Margin (%)1.831.675.27-1.13-36.97
NP After MI And SOA Margin (%)1.961.815.27-1.13-36.97
Return on Networth / Equity (%)7.894.536.54-1.01-9.21
Return on Capital Employeed (%)9.6112.497.66-1.45-6.13
Return On Assets (%)1.741.552.95-0.40-6.04
Long Term Debt / Equity (X)1.110.760.580.680.27
Total Debt / Equity (X)1.601.060.730.790.41
Asset Turnover Ratio (%)0.900.820.540.460.02
Current Ratio (X)1.020.970.960.951.17
Quick Ratio (X)0.900.870.870.891.17
Inventory Turnover Ratio (X)8.6610.050.000.002.15
Dividend Payout Ratio (NP) (%)52.4967.160.000.000.00
Dividend Payout Ratio (CP) (%)16.9918.820.000.000.00
Earning Retention Ratio (%)47.5132.840.000.000.00
Cash Earning Retention Ratio (%)83.0181.180.000.000.00
Interest Coverage Ratio (X)2.603.242.800.92-4.18
Interest Coverage Ratio (Post Tax) (X)1.491.391.90-0.33-6.12
Enterprise Value (Cr.)163.87128.48226.61144.2751.30
EV / Net Operating Revenue (X)0.980.822.032.043.44
EV / EBITDA (X)8.745.8312.4136.37-15.86
MarketCap / Net Operating Revenue (X)0.640.421.491.272.04
Retention Ratios (%)47.5032.830.000.000.00
Price / BV (X)2.601.071.841.130.50
Price / Net Operating Revenue (X)0.640.421.491.272.04
EarningsYield0.030.040.03-0.01-0.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Accel Ltd as of November 24, 2024 is: 23.47

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Accel Ltd is Undervalued by 5.72% compared to the current share price 22.20

Intrinsic Value of Accel Ltd as of November 24, 2024 is: 26.28

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Accel Ltd is Undervalued by 18.38% compared to the current share price 22.20

Last 5 Year EPS CAGR: 11.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (64.69 cr) and profit (0.92 cr) over the years.
  1. The stock has a low average ROCE of -0.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 98.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 16.17, which may not be favorable.
  4. The company has higher borrowings (39.31) compared to reserves (34.08), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Accel Ltd:
    1. Net Profit Margin: 1.83%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 9.61% (Industry Average ROCE: 18.02%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.89% (Industry Average ROE: 18.8%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.49
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.9
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 32.6 (Industry average Stock P/E: 91.12)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.6
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

ACCEL Ltd. is a Public Limited Listed company incorporated on 19/05/1986 and has its registered office in the State of Kerala, India. Company’s Corporate Identification Number(CIN) is L30007TN1986PLC100219 and registration number is 100219. Currently company belongs to the Industry of IT Consulting & Software. Company’s Total Operating Revenue is Rs. 110.86 Cr. and Equity Capital is Rs. 11.46 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & Software3rd Floor, SFI Complex, Chennai (Madras) Tamil Nadu 600034companysecretary@accel-india.com
http://www.accel-india.com
Management
NamePosition Held
Mr. S V RaoWhole Time Director
Mr. K NagarajanIndependent Director
Ms. Shruthi PanickerNon Independent Director
Mr. R RangarajanIndependent Director
Mr. K R VarmaIndependent Director
Mr. K R ChandrasekaranNon Independent Director

FAQ

What is the latest intrinsic value of Accel Ltd?

The latest intrinsic value of Accel Ltd as on 24 November 2024 is ₹23.47, which is 5.72% higher than the current market price of ₹22.20.

What is the Market Cap of Accel Ltd?

The Market Cap of Accel Ltd is 128 Cr..

What is the current Stock Price of Accel Ltd as on 24 November 2024?

The current stock price of Accel Ltd as on 24 November 2024 is 22.2.

What is the High / Low of Accel Ltd stocks in FY 2024?

In FY 2024, the High / Low of Accel Ltd stocks is 35.5/18.6.

What is the Stock P/E of Accel Ltd?

The Stock P/E of Accel Ltd is 32.6.

What is the Book Value of Accel Ltd?

The Book Value of Accel Ltd is 11.4.

What is the Dividend Yield of Accel Ltd?

The Dividend Yield of Accel Ltd is 1.35 %.

What is the ROCE of Accel Ltd?

The ROCE of Accel Ltd is 9.52 %.

What is the ROE of Accel Ltd?

The ROE of Accel Ltd is 6.23 %.

What is the Face Value of Accel Ltd?

The Face Value of Accel Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Accel Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE