Check Before You Invest : Action Construction Equipment Ltd

Q: 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: Is Action Construction Equipment Ltd a good quality company?

Action Construction Equipment Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Action Construction Equipment Ltd undervalued or overvalued?

Action Construction Equipment Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 24.25, Historic Median: 31.83. Price to Book, Current: 5.15, Historic Median: 6.37. Price to Sales, Current: 3.15, Historic Median: 3.38. EV to EBITDA, Current: 16.45, Historic Median: 20.98

Q: Is Action Construction Equipment Ltd a good buy now?

Action Construction Equipment Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: 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 23.49%, indicating slower growth.

Q: 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: 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: Net Profit Margin of Action Construction Equipment Ltd?

Action Construction Equipment Ltd Net Profit Margin is 12.16% for FY-2025, is above its 5-year median of 7.47%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.2, Historic Median: 11. Operating Profit Margin (%), Current: 15.06, Historic Median: 10.58. Net Profit Margin (%), Current: 12.16, Historic Median: 7.47

Q: 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: 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 5-year historical median of 26.99%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Action Construction Equipment Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Action Construction Equipment Ltd undervalued or overvalued?

Action Construction Equipment Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	24.25	31.83
Price to Book	5.15	6.37
Price to Sales	3.15	3.38
EV to EBITDA	16.45	20.98

Q.4 Is Action Construction Equipment Ltd a good buy now?

Action Construction Equipment Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 23.49%, 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 its 5-year median of 7.47%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	17.2	11
Operating Profit Margin (%)	15.06	10.58
Net Profit Margin (%)	12.16	7.47

B: Does the business utilize capital efficiently?

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 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 5-year historical median of 26.99%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 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 5-year historical median of 19.37%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Action Construction Equipment Ltd?

Action Construction Equipment Ltd Cash conversion cycle is -19 days, below its 5-year historical median of 6 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.31	1.4
ROE (%)	28.67	19.37
ROCE (%)	40.32	26.99
Cash Conversion Cycle	-19 days	6 days

C: How much debt does the business have and is it at a sustainable level?

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 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

D: Promoter shareholding and pledge status of Action Construction Equipment Ltd?

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)

E: How does Action Construction Equipment Ltd performance compare with that of its Peers?

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	5-year Industry Median
Revenue Growth (%)	14	10.9
Gross Profit Growth (%)	25.2	33.9
Operating Profit Growth (%)	24.1	40.3
Net Profit Growth (%)	23.2	50.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	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 35.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	35.9%	41.3%	24.5%	-29.6%

Q.2 Valuation ratios of Action Construction Equipment Ltd vs historical?

The current P/E ratio of 24.25 is lower than its historical median of 31.83, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	24.25	31.83	21.01
Price to Book	5.15	6.37	4.15
Price to Sales	3.15	3.38	3.38
EV to EBITDA	16.45	20.98	12.94

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Check Before You Invest : Action Construction Equipment Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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