Accelya Solutions Breakout

Oct 31, 2022

1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop

After a consolidation since November 2021, ACCELYA has given a breakout today. Buy with a stop just below ₹1175. (One can use the low of the previous bar/supertrend indicator/previous support point/fixed percentage from the buy price as stop loss also)

Strengths: -
1. TTM Sales growth is at 25%, TTM Profit growth is at 75, quarterly sales growth is at 35% and quarterly profit growth is at 133%

2. 10 year and 5 year average ROE more than 15%

3. Debt to equity at 0.10(less than 1 is good), Interest Coverage at 42.8(greater than 3 is good), Current Ratio at 2.44(greater than 1.5 is good), FCF to CFO at 80.7%

4. Dividend yield at 4.86% (consistent dividend payer since 2011)

5. Company has a good return on equity (ROE) track record: 3 Years ROE 28.7%

Weaknesses: -
1. Stock is trading at 7.34 times its book value

2. The company has delivered a poor sales growth of 0.05% over the past five years


Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advice from your advisors before jumping in.