Action Construction Equipment Limited (ACE) AI Stock Analysis

• Market Cap: ₹132.91B
• Dividend Yield: 0.18%
• Average Volume (3M): 21.78K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.21
• Revenue Growth: 8.29%
• EPS Growth: 22.68%
• Country: IN
• Employees: 1,387
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 8.21
• Shares Outstanding: 119,083,200
• 10 Day Avg. Volume: 10,215
• 30 Day Avg. Volume: 21,783
• PEG Ratio: 1.47
• Price to Book (P/B): 9.26
• Price to Sales (P/S): 4.50
• P/FCF Ratio: 78.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ₹1,180.00 ▲(6.04% Upside)

Action Construction Equipment Limited's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, the technical analysis indicates mixed signals, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Action Construction Equipment Limited Business Overview & Revenue Model

Company Description

Action Construction Equipment Limited manufactures and sells material handling and construction equipment primarily in India. The company operates through four segments: Cranes, Construction Equipment, Material Handling, and Agri Equipment. It offers concrete placing booms, crawler cranes, forklift trucks, backhoes and wheeled loaders, pick and carry cranes, mobile tower cranes, piling rigs, motor graders, tower cranes, vibratory rollers, truck mounted cranes, and warehousing equipment; and agriculture equipment, such as tractors, harvesters, balers, rotavators, etc., as well as other construction equipment. The company also rents tower cranes, motor graders, soil compacters, and tandem rollers. It serves various infrastructure construction, power projects, ports and shipyards, dams, metro rail, roads, mining, steel industry, engineering industry, railways, cement, petroleum, defense, chemicals and fertilizer plants, warehousing, logistics, and building construction sectors. The company was incorporated in 1995 and is headquartered in Palwal, India.

How the Company Makes Money

ACE generates revenue primarily through the sale of its construction and material handling equipment. The company has established a robust dealer network across India, which facilitates the distribution of its products. Additionally, ACE earns income through after-sales services and spare parts sales, which provide a steady stream of revenue. The company has also formed strategic partnerships with global equipment manufacturers, enhancing its product offerings and expanding its market reach. Factors contributing to its earnings include the growing demand for construction and infrastructure development in India, as well as an increasing focus on mechanization in agriculture.

Action Construction Equipment Limited Financial Statement Overview

Summary

Action Construction Equipment Limited exhibits impressive financial health with strong revenue growth and profitability, supported by a robust balance sheet and positive cash flow generation. Despite a decrease in operating cash flow, the company's low debt levels and efficient use of equity present a favorable outlook for continued financial stability and growth.

Income Statement

Action Construction Equipment Limited has demonstrated strong income statement performance with consistent revenue growth, particularly notable in the recent year with a 14.35% increase from 2024 to 2025. The gross profit margin is robust at 31.68%, and net profit margin has improved to 12.29%, indicating effective cost management. EBIT and EBITDA margins are healthy, suggesting operational efficiency. This upward trend in profitability metrics highlights the company's strong market position.

Balance Sheet

The company's balance sheet is solid, characterized by a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The equity ratio is strong at 59.58%, showcasing a stable capital structure. Return on equity stands at 25.34%, reflecting effective use of shareholders' capital to generate profits. The company's financial stability is further supported by improving equity levels over the years.

Cash Flow

Cash flow analysis reveals a mixed picture with a decrease in operating cash flow from 4334.2 million in 2024 to 4119.8 million in 2025, yet free cash flow remains positive at 1909.8 million, indicating sufficient liquidity for investments and debt servicing. The free cash flow to net income ratio is robust, suggesting strong cash conversion. However, the decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.45B	33.27B	29.10B	21.57B	16.30B	12.25B
Gross Profit	10.54B	10.54B	8.57B	4.04B	2.81B	3.19B
EBITDA	6.15B	5.06B	4.75B	2.62B	1.62B	1.34B
Net Income	4.23B	4.09B	3.28B	1.72B	1.05B	798.31M
Balance Sheet
Total Assets	0.00	27.11B	21.69B	16.00B	12.82B	10.55B
Cash, Cash Equivalents and Short-Term Investments	4.36B	4.31B	4.76B	2.44B	1.25B	614.85M
Total Debt	0.00	164.40M	44.63M	74.48M	93.82M	545.77M
Total Liabilities	-16.16B	10.94B	9.38B	6.80B	5.28B	5.32B
Stockholders Equity	16.16B	16.15B	12.30B	9.19B	7.54B	5.23B
Cash Flow
Free Cash Flow	0.00	1.91B	2.58B	2.00B	552.70M	422.31M
Operating Cash Flow	0.00	4.12B	4.33B	2.74B	1.04B	860.63M
Investing Cash Flow	0.00	-3.83B	-3.68B	-2.18B	-2.01B	-162.26M
Financing Cash Flow	0.00	-289.90M	-386.56M	-410.07M	708.00M	-403.40M

Action Construction Equipment Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1112.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ACE, the sentiment is Positive. The current price of 1112.75 is above the 20-day moving average (MA) of 1087.78, above the 50-day MA of 1073.36, and below the 200-day MA of 1179.29, indicating a neutral trend. The MACD of 1.04 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 79.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ACE.

Action Construction Equipment Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	75 Outperform	₹52.86B	5.55	―	0.13%	-2.17%	17.20%
BEML	68 Neutral	₹183.89B	61.52	―	0.48%	-2.17%	4.39%
ACE	67 Neutral	₹132.91B	31.00	―	0.18%	8.29%	22.68%
KIRLOSBROS	66 Neutral	₹156.66B	37.60	―	0.36%	7.45%	19.19%
IRCON	65 Neutral	₹158.99B	23.80	―	1.56%	-13.80%	-30.87%
SCHNEIDER	64 Neutral	₹196.33B	74.58	―	―	15.67%	40.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%