Action Construction Equipment Limited (ACE) AI Stock Analysis

• Market Cap: ₹121.77B
• Dividend Yield: 0.2%
• Average Volume (3M): 11.02K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.25
• Revenue Growth: 4.95%
• EPS Growth: 14.36%
• Country: IN
• Employees: 1,387
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 7.57
• Shares Outstanding: 119,083,200
• 10 Day Avg. Volume: 8,655
• 30 Day Avg. Volume: 11,015
• 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: ₹1,274.00
• Price Target Upside: 29.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹1,075.00 ▲(9.65% Upside)

The overall stock score of 65 reflects strong financial performance, which is the most significant factor. However, bearish technical indicators and a moderate valuation score temper the overall outlook. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly a 14.35% increase from 2024 to 2025, indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Profit Margins

Robust profit margins reflect effective cost management and operational efficiency, enhancing the company's ability to reinvest in growth and maintain competitive pricing.

Balance Sheet Health

A low debt-to-equity ratio indicates minimal leverage and financial risk, providing stability and flexibility to pursue strategic investments and weather economic fluctuations.

Negative Factors

Decline in Operating Cash Flow

The decline in operating cash flow suggests potential challenges in cash generation, which could impact the company's ability to fund operations and growth initiatives without relying on external financing.

Free Cash Flow Growth

A decline in free cash flow growth may limit the company's capacity to invest in new projects or return capital to shareholders, affecting long-term growth prospects and shareholder value.

Earnings Call Data Absence

The absence of earnings call data limits transparency and investor insight into management's strategic direction and operational performance, potentially impacting investor confidence and decision-making.

Action Construction Equipment Limited Business Overview & Revenue Model

Company Description

Action Construction Equipment Limited (ACE) is a leading manufacturer and supplier of construction and material handling equipment in India. Established in 1995, the company operates in various sectors including construction, agriculture, and infrastructure development. ACE offers a diverse range of products such as cranes, hydraulic excavators, backhoe loaders, and other specialized machinery, catering to the needs of both domestic and international markets.

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 demonstrates strong financial health with consistent revenue growth, robust profit margins, and a solid balance sheet characterized by low debt and effective equity use. The decrease in operating cash flow is a concern but is offset by positive free cash flow.

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: Negative
• Last Price: 980.40
• 50DMA: Negative
• 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 Negative. The current price of 980.4 is below the 20-day moving average (MA) of 1005.45, below the 50-day MA of 1062.36, and below the 200-day MA of 1142.63, indicating a bearish trend. The MACD of -26.80 indicates Negative momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 58.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
ACE	65 Neutral	₹121.77B	29.11	―	0.20%	4.95%	14.36%
IRCON	65 Neutral	₹158.10B	23.67	―	1.66%	-13.85%	-34.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SCHNEIDER	63 Neutral	₹175.54B	67.85	―	―	12.77%	31.32%
KNRCON	62 Neutral	₹50.48B	5.30	―	0.15%	-42.73%	-44.36%
BEML	61 Neutral	₹178.48B	59.72	―	0.29%	-1.31%	3.61%
KIRLOSBROS	59 Neutral	₹147.78B	37.70	―	0.42%	4.16%	-0.73%