Gladiator Stocks - Accelya Solutions - ICICI Direct

Technical View

The IT space has been key outperforming sector over a year now. Within this space Accelya Solution has been underperformer in midcap space. In the current month the stock has resolved out of three year long bullish reversal bottom formation, indicating turnaround and makes us believe that stock will catch up and outperform in coming months

Structurally, after three years of consolidation the stock has witnessed breakout with significant volume expansion, signalling a bullish turnaround in price structure and longevity of uptrend

Fundamental View

- Accelya is a global provider of technology platforms, software and services to the travel and transport industry. Accelya has been delivering financial, commercial, cargo and analytics solutions for more than 40 years. The company generates 32% revenues from America's, 18% from Europe, 36% Asia Pacific and rest from Middle East & Africa

- Accelya partners with airlines right from the time a ticket or an airway bill is issued, all the way through its entire life cycle until the data is converted into actionable decision support. Since majority of its revenues is from the airline vertical, revenues were severely impacted by the ongoing crisis and travel restrictions. However, the company is witnessing improving revenue growth. On a QoQ basis from Q2FY21 onwards. In the current quarter also, Accelya witnessed an improvement in revenues mainly led by a recovery in worldwide passenger volumes. Going forward, we expect travel demand to improve led by vaccination drive across countries, improved volumes in airline segment and easing of lockdowns across countries. Hence, post a dip of 29% YoY in FY21E, we expect revenues to increase at ~25% CAGR in FY21E-23E

For details, click on the link below: Link to the report

Shares of Accelya Kale Solutions Limitd was last trading in BSE at Rs.1448.6 as compared to the previous close of Rs. 1400.35. The total number of shares traded during the day was 62230 in over 5181 trades.

The stock hit an intraday high of Rs. 1527.65 and intraday low of 1402.9. The net turnover during the day was Rs. 90819787.

Source : Equity Bulls

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