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Action Construction Equipment Limited (IN:ACE)
:ACE
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Action Construction Equipment Limited (ACE) AI Stock Analysis

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IN:ACE

Action Construction Equipment Limited

(ACE)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
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 (ACE) vs. iShares MSCI India ETF (INDA)

Action Construction Equipment Limited Business Overview & Revenue Model

Company DescriptionAction 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 MoneyACE 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
88
Very Positive
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
85
Very Positive
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
80
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue32.45B33.27B29.10B21.57B16.30B12.25B
Gross Profit10.54B10.54B8.57B4.04B2.81B3.19B
EBITDA6.15B5.06B4.75B2.62B1.62B1.34B
Net Income4.23B4.09B3.28B1.72B1.05B798.31M
Balance Sheet
Total Assets0.0027.11B21.69B16.00B12.82B10.55B
Cash, Cash Equivalents and Short-Term Investments4.36B4.31B4.76B2.44B1.25B614.85M
Total Debt0.00164.40M44.63M74.48M93.82M545.77M
Total Liabilities-16.16B10.94B9.38B6.80B5.28B5.32B
Stockholders Equity16.16B16.15B12.30B9.19B7.54B5.23B
Cash Flow
Free Cash Flow0.001.91B2.58B2.00B552.70M422.31M
Operating Cash Flow0.004.12B4.33B2.74B1.04B860.63M
Investing Cash Flow0.00-3.83B-3.68B-2.18B-2.01B-162.26M
Financing Cash Flow0.00-289.90M-386.56M-410.07M708.00M-403.40M

Action Construction Equipment Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1112.75
Price Trends
50DMA
1073.36
Positive
100DMA
1124.64
Negative
200DMA
1179.29
Negative
Market Momentum
MACD
1.04
Negative
RSI
53.02
Neutral
STOCH
79.32
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
₹52.86B5.550.13%-2.17%17.20%
68
Neutral
₹183.89B61.520.48%-2.17%4.39%
67
Neutral
₹132.91B31.000.18%8.29%22.68%
66
Neutral
₹156.66B37.600.36%7.45%19.19%
65
Neutral
₹158.99B23.801.56%-13.80%-30.87%
64
Neutral
₹196.33B74.5815.67%40.44%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ACE
Action Construction Equipment Limited
1,101.30
-118.90
-9.74%
IN:BEML
BEML Limited
4,397.80
678.77
18.25%
IN:IRCON
IRCON International Ltd.
169.45
-20.87
-10.97%
IN:KIRLOSBROS
Kirloskar Brothers Ltd.
1,929.40
309.18
19.08%
IN:KNRCON
KNR Constructions Limited
189.75
-87.85
-31.65%
IN:SCHNEIDER
Schneider Electric Infrastructure Limited
813.05
84.10
11.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 18, 2025