Action Construction Equipment Limited (ACE) AI Stock Analysis

• Market Cap: ₹102.97B
• Dividend Yield: 0.21%
• Average Volume (3M): 11.02K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 1.48
• Revenue Growth: 4.95%
• EPS Growth: 14.36%
• Country: IN
• Employees: 1,387
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 9.78
• 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: ₹1,166.00
• Price Target Upside: 22.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 37.5
• Revenue Forecast (FY): ₹35.69B

• Rating: 65 Neutral
• Price Target: ₹961.00 ▲(0.78% Upside)
• Action: Downgraded Date: 11/12/25
• Date: Action: Downgraded 11/12/25

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 & improving margins

Sustained revenue growth and materially improved margins signal durable demand and operational efficiency. Higher gross and net margins expand internal reinvestment capacity and buffer profitability across cycles, supporting reinvestment in products, service networks, and long-term competitiveness.

Very low leverage and strong capital structure

Extremely low leverage and a high equity ratio provide financial flexibility for capex, R&D, and working capital without material refinancing risk. Strong ROE indicates effective capital deployment, enabling durable returns and resilience to demand downturns.

Positive free cash flow and cash conversion

Material positive free cash flow and strong cash conversion underpin the company's ability to fund capex, service any debt, and support aftermarket operations. Reliable FCF sustains long-term investment and shareholder returns even if operating cash growth moderates.

Negative Factors

Cyclicality of end markets

Heavy exposure to infrastructure, construction, and industrial capex makes revenue and utilization sensitive to macro cycles. This structural cyclicality can produce multi-quarter variability in orders and margins, complicating planning and leading to uneven cash flow timing.

Decline in operating cash flow

A drop in operating cash flow, despite positive FCF, signals potential volatility in working capital or collections. Persistent declines would reduce internal funding for growth and increase sensitivity to external financing, weakening long-term operational flexibility.

Limited visibility on recurring aftermarket revenue

Aftermarket services are cited as an ancillary revenue stream but lack quantification, reducing predictability of stable, high-margin recurring income. Limited disclosure on service/spare-parts contribution hampers long-term revenue visibility and modeling of steady cash flows.

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 demonstrates strong financial performance with consistent revenue growth and robust profitability metrics. The balance sheet is solid with minimal leverage, and cash flow remains positive despite a decrease in operating cash flow. Overall, the company's financial health is impressive, supporting a favorable outlook.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 953.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 953.6 is above the 20-day moving average (MA) of 891.44, above the 50-day MA of 893.32, and below the 200-day MA of 1053.35, indicating a neutral trend. The MACD of -1.46 indicates Positive momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 20.24 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	74 Outperform	₹38.01B	8.09	―	0.16%	-42.73%	-44.36%
SCHNEIDER	69 Neutral	₹210.32B	84.94	―	―	12.77%	31.32%
ACE	65 Neutral	₹102.97B	24.34	―	0.21%	4.95%	14.36%
IRCON	65 Neutral	₹139.24B	22.65	―	1.56%	-13.85%	-34.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEML	62 Neutral	₹139.25B	56.76	―	0.29%	-1.31%	3.61%
KIRLOSBROS	59 Neutral	₹124.62B	31.22	―	0.43%	4.16%	-0.73%

Action Construction Equipment Limited Corporate Events

Action Construction Equipment Schedules Virtual Meet With Schroder

Action Construction Equipment Limited has notified stock exchanges about its upcoming interaction with institutional investors as part of its regular market communication. The company operates in the construction equipment and material handling industry, supplying cranes and related machinery to infrastructure and industrial clients in India.

The company will hold a one-on-one virtual analyst and investor meeting with Schroder on February 27, 2026, at 3:00 p.m., in line with disclosure requirements under SEBI’s Listing Regulations. The scheduled interaction underscores ACE’s ongoing engagement with the investment community, though the company has noted that timings and participation may change due to exigencies for either the investors or the company.

Action Construction Equipment Shares Q3 FY2026 Earnings Call Audio With Exchanges

Action Construction Equipment Limited has notified the stock exchanges that it has made available an audio recording of its Q3 FY2026 earnings conference call held on February 4, 2026. The disclosure, made under SEBI’s listing regulations, enhances transparency for investors and analysts by providing broader access to the company’s quarterly performance discussions and management commentary, supporting more informed stakeholder assessment of ACE’s financial and operational outlook.

Action Construction Equipment Sets February 4 Investor Call on Q3 FY26 Results

Action Construction Equipment Limited has announced that it will hold a conference call on February 4, 2026, at 4:00 p.m. IST to discuss its financial results for the third quarter and nine months of FY26, to be released on February 3, 2026. Organized in association with Emkay Global Financial Services, the call will feature key members of the company’s leadership, including the executive director, chief financial officer, and president, offering investors and analysts an opportunity to gain deeper insight into the company’s recent performance and outlook, which may inform market perceptions and investment decisions.

ACE Closes Trading Window Ahead of Q3 FY2026 Results

Action Construction Equipment Limited has announced the closure of its trading window for dealings in the company’s securities from 1 January 2026 until 48 hours after the declaration of its financial results for the quarter ended 31 December 2025. The restriction, applicable to directors, key managerial personnel, promoters, promoter group and other designated persons, is in line with SEBI’s insider trading regulations and the company’s internal code of conduct, aiming to prevent trading on unpublished price-sensitive information and reinforce governance standards for stakeholders.

ACE and Sanghvi Movers Sign MOU for Indigenous Heavy Cranes

Action Construction Equipment Limited (ACE) and Sanghvi Movers Limited have signed a strategic Memorandum of Understanding (MOU) to enhance the deployment of indigenously manufactured heavy cranes in India. This collaboration aligns with the ‘Make in India’ initiative, aiming to reduce import dependency, strengthen domestic manufacturing capabilities, and support infrastructure development. The partnership is expected to drive import substitution, develop local supply chains, and contribute to employment and skill development, positioning India as a global hub for high-capacity lifting solutions.