Action Construction Equipment Limited (ACE) AI Stock Analysis

• Market Cap: ₹98.72B
• Dividend Yield: 0.21%
• Average Volume (3M): 11.02K
• Price to Earnings (P/E): 24.2
• 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): 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: ₹891.00 ▼(-6.56% Downside)
• 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

Low Leverage & Strong Capital Structure

Minimal leverage (debt/equity ~0.01) and a high equity ratio provide durable financial flexibility, lowering refinancing risk during downturns. A 25.34% ROE signals efficient capital deployment, supporting sustained reinvestment into products, distribution and aftermarket services over the medium term.

Consistent Revenue Growth & Healthy Margins

Double‑digit revenue growth paired with a ~32% gross margin and ~12% net margin indicates structural pricing power and cost control across product lines. This margin profile supports durable profitability through normal cyclical variability and funds aftermarket and product development investments.

Positive Free Cash Flow & Strong Cash Conversion

Sustained positive free cash flow (~1,909.8m) and strong FCF-to-net-income conversion provide long‑term funding for capex, spare parts inventory, dealer support and modest share of returns to shareholders. Reliable cash generation underpins operational stability and strategic reinvestment.

Negative Factors

Declining Operating Cash Flow Growth

A falling operating cash flow trend, even with positive FCF, signals potential pressure on working capital or collection cycles. If persistent, this could constrain investment in inventory, dealer credit and service capacity, reducing the company’s ability to scale aftermarket revenue and absorb demand shocks.

End‑market Cyclicality

Revenue is structurally tied to infrastructure, construction and industrial capex cycles, making top-line and margin sustainability sensitive to macro and policy-driven capex swings. Lumpy equipment orders can produce volatility in utilization, margins and dealer inventory needs over multi‑quarter horizons.

Limited Export Diversification

Heavy reliance on domestic distribution with only 'select' export channels concentrates geographic risk. Limited international diversification can cap growth opportunities and leaves the business more exposed to localized slowdowns, regulatory shifts or competitive pressures in the home market.

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 primarily makes money by selling equipment it manufactures. Key revenue streams include (1) sale of cranes and related lifting solutions, (2) sale of material handling equipment such as forklifts and other warehouse/logistics handling products, (3) sale of construction equipment, and (4) sale of agricultural equipment/implements. In addition to equipment sales, the company typically generates ancillary revenue from aftermarket support—such as spare parts, consumables, and maintenance/service—tied to its installed base (specific contribution not publicly quantified here: null). Revenue is supported by distribution/dealer sales and direct institutional/customer orders (specific breakdown by channel: null), with earnings influenced by demand from infrastructure and construction activity, industrial capex cycles, and replacement/maintenance needs in the field. Significant partnerships materially driving earnings: null.

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	32.32B	33.27B	29.10B	21.57B	16.30B	12.25B
Gross Profit	10.18B	10.54B	8.57B	4.04B	2.81B	3.19B
EBITDA	6.11B	5.06B	4.75B	2.62B	1.62B	1.34B
Net Income	4.18B	4.09B	3.28B	1.72B	1.05B	798.31M
Balance Sheet
Total Assets	29.90B	27.11B	21.69B	16.00B	12.82B	10.55B
Cash, Cash Equivalents and Short-Term Investments	4.92B	4.31B	4.76B	2.44B	1.25B	614.85M
Total Debt	1.43B	164.40M	44.63M	74.48M	93.82M	545.77M
Total Liabilities	12.08B	10.94B	9.38B	6.80B	5.28B	5.32B
Stockholders Equity	17.83B	16.15B	12.30B	9.19B	7.54B	5.23B
Cash Flow
Free Cash Flow	-406.10M	1.91B	2.58B	2.00B	552.70M	422.31M
Operating Cash Flow	47.40M	4.12B	4.33B	2.74B	1.04B	860.63M
Investing Cash Flow	-1.17B	-3.83B	-3.68B	-2.18B	-2.01B	-162.26M
Financing Cash Flow	868.20M	-289.90M	-386.56M	-410.07M	708.00M	-403.40M

Action Construction Equipment Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 953.60
• 50DMA: Negative
• 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 Negative. The current price of 953.6 is above the 20-day moving average (MA) of 857.04, above the 50-day MA of 867.74, and below the 200-day MA of 1024.86, indicating a bearish trend. The MACD of -14.42 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 28.08 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
SCHNEIDER	69 Neutral	₹212.83B	44.51	―	―	12.77%	31.32%
KNRCON	67 Neutral	₹33.20B	11.13	―	0.16%	-42.73%	-44.36%
ACE	65 Neutral	₹98.72B	24.20	―	0.21%	4.95%	14.36%
IRCON	65 Neutral	₹116.34B	41.51	―	1.56%	-13.85%	-34.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEML	62 Neutral	₹126.09B	-173.04	―	0.29%	-1.31%	3.61%
KIRLOSBROS	59 Neutral	₹124.05B	25.72	―	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.