Action Construction Equipment Ltd logo

Action Construction Equipment Ltd

ACE NSE

Key Fundamentals

MicrocapCommercial VehiclesAutomobiles
Market Cap
₹12,008 Cr
Volatility
High Risk
P/E Ratio
28.34
EBITDA
₹504 Cr
Return on Equity
26.65%
Debt to Equity
0.01
Book Value
₹168.87
EPS
₹28.95
52W High
₹1,236
52W Low
₹745.1

Technical Indicators

Key Insights

Strengths

4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 40.5% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 26.7%

Growth Rate

Revenue Growth
-4.29% ↘
Net Income Growth
2.08% ↗
Cash Flow Change
-4.95% ↘
ROE
-4.99% ↘
ROCE
-3.46% ↘
EBITDA Margin (Avg.)
-15.95% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
AI opinion · based on fundamentals
Risk medium
BUY Worth buying at current levels Conviction 6/10

ACE delivers exceptional profit growth (40% CAGR over 5 years) with near-zero debt and strong ROE of 23-27%. However, TTM sales growth has turned negative at -1% and the stock has corrected 16% in the past year, suggesting near-term headwinds despite solid long-term fundamentals.

Bull Case 7
  • Outstanding profit CAGR of 40% over 5 years demonstrates strong operating leverage and margin expansion
  • Company is virtually debt-free, providing significant financial flexibility and resilience during cyclical downturns
  • Consistent ROE track record of 27% (3-year), 24% (5-year), and 21% (10-year) shows durable capital efficiency
  • Long-term stock CAGR of 38% over 10 years and 35% over 5 years reflects sustained wealth creation
  • Compounded sales growth of 22% over 5 years and 18% over 10 years indicates steady revenue scaling
  • 100% analyst buy rating (1 out of 1 analyst) signals positive institutional sentiment
  • Company has actively reduced debt over recent periods, strengthening the balance sheet for future capex cycles
Bear Case 8
  • TTM sales growth has turned negative at -1%, signaling potential demand slowdown in the construction equipment segment
  • Stock has declined 16% over the past 1 year, indicating loss of market momentum and possible derating
  • PE ratio of 28.9x is elevated for a cyclical capital goods company with negative near-term revenue growth
  • Price-to-book of 5.96x leaves limited margin of safety if earnings growth decelerates further
  • TTM profit growth has slowed sharply to just 2% versus 38% 3-year CAGR, suggesting earnings momentum is fading
  • Dividend yield of only 0.2% offers negligible income cushion during periods of capital depreciation
  • Only 1 analyst covers the stock, implying limited institutional research depth and potential liquidity risk for large positions
  • Cyclical nature of construction equipment demand exposes earnings to infrastructure spending slowdowns with market cap at Rs 11,924 Cr

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 15h ago
Headwinds 3
  • Steel costs up 20%+ since Jan Jun 15

    Steel prices rose more than 20% from January levels, creating margin pressure on construction equipment manufacturing.

  • Stage V norms raise machine prices Jun 15

    Transition to Stage V emission norms led to higher machine prices and pull-forward of customer purchases into FY25, impacting FY26 volumes.

  • Revenue dipped slightly in FY26 Jun 15

    Revenue fell marginally to ₹3,391 crore in FY26 from ₹3,427 crore in FY25 due to extended monsoons and slower project mobilisation.

Positives 6
  • 63% mobile crane market share Jun 15

    ACE holds ~63% market share in mobile cranes and ~60% in tower cranes, making it the dominant player in India's construction equipment sector.

  • Zero debt, strong return metrics Jun 15

    Company maintains a debt-free balance sheet with zero debt-to-equity, ROCE of 31.7%, and ROE of 22.9%.

  • Defence order book ₹575 crore Jun 15

    Defence revenue expected to grow from ~3% of total revenue in FY26 to 5-6% in FY27, with current order book of ~₹575 crore.

  • EBITDA margin expanded to 18.1% Jun 15

    EBITDA margins improved to 18.1% from 17.7% YoY despite cost headwinds, with net profit rising to ₹415 crore from ₹409 crore.

  • KATO JV for heavy cranes Jun 15

    50:50 joint venture with Japan's KATO Works targets truck cranes, crawler cranes, and rough terrain cranes combining ACE's manufacturing with KATO's technology.

  • 60% capacity utilisation headroom Jun 15

    Blended capacity utilisation across segments stands at only ~60%, allowing significant growth without large immediate capex requirements.

Neutral 2
  • Promoter confirms no share encumbrance Jun 15

    Promoter Surbhi Garg declared no encumbrance on shares for FY26 under SEBI regulations.

  • Multiple analyst meets scheduled Jun 12

    ACE scheduled meetings with Goldman Sachs (Jun 16), IIFL AMC & Quantum MF (Jun 10-11), and Ashmore Group (Jun 3), indicating strong institutional interest.

TL;DR: ACE dominates India's crane market with 63% share, zero debt, and expanding margins despite a slight revenue dip in FY26. Key risks include 20%+ steel cost inflation and demand disruption from Stage V emission norm transitions. The defence business and KATO JV provide diversified growth levers, while 60% capacity utilisation offers room to scale without heavy capex. Trend is constructive as margin resilience and institutional engagement signal confidence in FY27 recovery.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
614
652
673
753
836
734
757
875
961
652
744
855
1,029
Expenses
541
570
584
650
706
636
648
740
797
559
635
725
857
Operating Profit
73
82
89
103
130
99
109
135
164
93
109
130
172
OPM %
12%
13%
13%
14%
16%
13%
14%
15%
17%
14%
15%
15%
17%
Other Income
3
16
17
23
21
28
34
30
8
51
29
36
-6
Interest
3
3
4
6
11
7
9
8
4
8
6
5
3
Depreciation
5
5
5
6
7
7
7
7
7
8
9
9
10
PBT
68
90
97
114
133
112
127
149
161
128
124
152
153
Tax %
31%
25%
24%
23%
26%
25%
25%
25%
26%
23%
27%
23%
28%
Net Profit
47
68
74
88
98
84
95
112
119
98
90
116
111
EPS in Rs
4
5.67
6.21
7.41
8.27
7.07
7.96
9.38
9.96
8.21
7.56
9.78
9.31
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
599
637
751
1,087
1,343
1,156
1,227
1,630
2,160
2,914
3,327
3,280
Expenses
580
607
712
995
1,245
1,065
1,108
1,478
1,939
2,510
2,821
2,776
Operating Profit
19
31
39
92
98
92
119
151
221
404
506
504
OPM %
3%
5%
5%
8%
7%
8%
10%
9%
10%
14%
15%
15%
Other Income
12
10
8
8
10
4
15
11
41
77
100
110
Interest
13
14
16
14
12
15
12
10
10
23
29
22
Depreciation
10
11
12
12
12
13
14
15
18
23
28
35
PBT
8
15
19
74
84
68
108
137
234
434
549
557
Tax %
35%
42%
27%
30%
33%
23%
26%
24%
26%
24%
25%
25%
Net Profit
5
9
14
52
56
52
80
105
173
328
409
415
EPS in Rs
0.67
0.85
1.31
4.44
4.78
4.63
7.03
8.82
14.41
27.56
34.36
34.86
Div. Payout %
30%
24%
23%
11%
10%
11%
7%
7%
7%
7%
6%
6%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
20
23
23
23
23
23
23
24
24
24
24
24
Reserves
272
259
311
359
414
420
501
730
895
1,206
1,591
1,987
Borrowings
138
154
114
78
53
82
55
31
7
4
16
8
Other Liabilities
180
183
229
356
396
429
477
497
674
934
1,079
1,233
Total Liabilities
609
620
677
817
887
954
1,055
1,282
1,600
2,169
2,710
3,252
Fixed Assets
283
315
346
337
341
412
429
452
487
580
716
782
CWIP
7
2
7
5
8
19
13
24
24
44
29
48
Investments
14
17
18
35
45
28
31
179
349
594
918
1,283
Other Assets
305
286
305
439
493
494
582
627
739
951
1,048
1,138
Total Assets
609
620
677
817
887
954
1,055
1,282
1,600
2,169
2,710
3,252
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
40
57
76
89
72
48
86
104
274
433
412
417
Investing
-14
-25
-17
-35
-27
-20
-16
-201
-218
-368
-382
-350
Financing
-26
-33
-57
-53
-44
-33
-40
71
-41
-39
-29
-52
Net Cash Flow
-1
0
2
1
2
-5
30
-27
16
27
1
15
Free Cash Flow
26
32
61
59
49
10
70
59
238
268
206
331
CFO/OP
226
186
204
114
96
70
93
90
154
133
108
114
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
49
47
51
57
39
47
67
42
29
21
29
32
Inventory Days
119
102
78
69
79
124
113
104
99
100
83
100
Days Payable
98
93
102
112
105
147
141
129
119
124
130
151
Cash Conversion Cycle
70
56
27
14
14
24
39
18
9
-4
-18
-20
Working Capital Days
-17
-19
-10
1
4
2
11
18
-2
-17
-21
37
ROCE %
3%
6%
8%
19%
20%
16%
21%
21%
26%
42%
40%
32%

Shareholding Pattern

As of Mar 2026
Promoters 65.42%
Public 19.03%
FIIs 9.58%
Others 4.13%
DIIs 1.84%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
70.05%
70.05%
66.76%
66.76%
66.76%
66.76%
66.76%
66.76%
66.76%
66.76%
66.76%
66.76%
66.76%
65.41%
65.41%
65.41%
65.41%
65.41%
65.42%
65.42%
65.42%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
8.95%
0.00%
9.35%
10.13%
10.48%
11.90%
11.58%
11.44%
10.36%
10.41%
9.58%
DIIs
1.43%
1.43%
3.56%
3.58%
3.35%
3.58%
3.32%
3.45%
3.54%
3.46%
2.79%
1.31%
2.21%
1.80%
1.62%
1.75%
1.97%
2.05%
1.82%
1.76%
1.84%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
21.98%
20.41%
20.86%
22.85%
21.52%
21.27%
19.54%
20.02%
19.29%
19.02%
17.60%
18.01%
17.91%
18.82%
18.72%
17.33%
17.54%
17.63%
18.20%
18.60%
19.03%
Others
6.55%
8.11%
8.82%
6.82%
8.37%
8.39%
10.38%
9.77%
10.42%
10.75%
3.90%
13.92%
3.77%
3.84%
3.76%
3.60%
3.51%
3.46%
4.18%
3.82%
4.13%
No. of Shareholders
0
41,110
61,094
79,264
95,010
92,888
92,546
83,820
85,319
88,830
1,04,247
1,14,418
1,31,256
1,74,717
1,82,607
1,62,240
1,66,873
1,71,647
1,81,766
1,81,846
1,81,542

Documents

1
Concall - Dec 2017 Dec 2017
2
Concall - Aug 2021 Aug 2021
3
Concall - Aug 2021 Aug 2021
4
Concall - Aug 2023 Aug 2023
5
Concall - Feb 2024 Feb 2024

Frequently Asked Questions about Action Construction Equipment Ltd

What does Action Construction Equipment Ltd do?
Action Construction Equipment Ltd is engaged in the business of manufacturing and marketing of hydraulic mobile cranes, mobile tower cranes, material handling equipment like forklifts, road construction equipment like backhoe loaders, compactors, motor graders and agriculture equipment like tract...
Where is Action Construction Equipment Ltd (ACE) listed?
Action Construction Equipment Ltd is listed on the Indian stock exchanges. It is listed on NSE: ACE and BSE: 532762. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Action Construction Equipment Ltd belong to?
Action Construction Equipment Ltd operates in the Industrials sector within the Agricultural, Commercial & Construction Vehicles industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Action Construction Equipment Ltd?
Action Construction Equipment Ltd has a market capitalisation of approximately ₹12007.75 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Action Construction Equipment Ltd?
The Price-to-Earnings (PE) ratio of Action Construction Equipment Ltd is 28.34. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Action Construction Equipment Ltd?
Over the past 52 weeks, Action Construction Equipment Ltd has traded between a low of ₹745.1 and a high of ₹1,236. This range helps investors understand the stock's price volatility and recent trading levels.
Does Action Construction Equipment Ltd pay dividends?
Yes, Action Construction Equipment Ltd has a dividend yield of 0.20%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Action Construction Equipment Ltd?
Action Construction Equipment Ltd has a Return on Equity (ROE) of 26.65%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Action Construction Equipment Ltd on Tapetide?
On Tapetide, you can view Action Construction Equipment Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Action Construction Equipment Ltd is engaged in the business of manufacturing and marketing of hydraulic mobile cranes, mobile tower cranes, material handling equipment like forklifts, road construction equipment like backhoe loaders, compactors, motor graders and agriculture equipment like tractors, harvesters, rotavators, etc. It was incorporated in 1995 and concluded its IPO in 2006.[1]

Website ace-cranes.com
CEO Mr. Vijay Agarwal MBA
Employees 1,492
Listed 2006-09-26
Face Value ₹ 2
Issued Size 11,90,83,196

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