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INVESTMENT INSIGHTS

Check Before You Invest : Action Construction Equipment Ltd

BSE: 532762 NSE: ACE ISIN: INE731H01025
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Construction Vehicles

Snapshot

Q.1 Which industry/sub-sector does Action Construction Equipment Ltd belong to?
Action Construction Equipment Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Construction Vehicles segment.
Q.2 Is Action Construction Equipment Ltd a good quality company?
Action Construction Equipment Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Action Construction Equipment Ltd undervalued or overvalued?
Action Construction Equipment Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Action Construction Equipment Ltd a good buy now?
Action Construction Equipment Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Action Construction Equipment Ltd?
Action Construction Equipment Ltd revenue growth is 14% for FY-2025 , which is below its 5 year CAGR of 23.5% , indicating slower growth.
Q.2 Gross Profit margin of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.2% for FY-2025 , which is above its 5 year median of 11% , indicating increasing margins.
Q.3 Operating Profit Margin of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.06% for FY-2025 , which is above its 5 year median of 10.58% indicating increasing margins.
Q.4 Net Profit Margin of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Net Profit Margin is 12.16% for FY-2025 , is above with its 5 year median of 7.47%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 17.2 11
Operating Profit Margin 15.06 10.58
Net Profit Margin 12.16 7.47
Q.5 Return on Asset of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Return on Asset is 15.89%, which is above its 5 year historical median of 11.25%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Return on equity is 28.67% for FY-2025 , which is above its historical median of 19.37%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Return on capital employed is 40.32% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Cash conversion cycle is -19 days, below its historical median of 6 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.31 1.4
ROE 28.67 19.37
ROCE 40.32 26.99
Cash Conversion Cycle -19 days 6 days
Q.9 Debt to Equity ratio of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Debt-to-Equity ratio is 0.01 , which is lower with the industry average of 0.28 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Action Construction Equipment Ltd?
Action Construction Equipment Ltd Debt to cash flow from operations is 0.04 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Action Construction Equipment Ltd?
Promoters hold 65.42% of the Action Construction Equipment Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Action Construction Equipment Ltd vs industry peers?
Action Construction Equipment Ltd revenue CAGR is 23.49% , compared to the industry median CAGR of 10.87% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,320.3 455.8
Gross Profit 571 237.4
Operating Profit 500 225
Net Profit 404 112
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.31 0.75
ROE 28.67 11.98
ROCE 40.32 14.25
Cash Conversion Cycle (days) -18.71 110

Valuation & price assessment

Q.1 Stock return of Action Construction Equipment Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 36.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 36.8% 43.8% 30.9% -28%
Q.3 Valuation ratios of Action Construction Equipment Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 24.79 19.32 28.98
Price to Book 5.7 1.61 3.98
Price to Sales 3.36 0.73 3.34
EV to EBITDA 17.27 10.44 12.62

Check more companies

1. BEML
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4. TIL
5. Brady & Morris Engg
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