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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532762 | NSE: ACE

Action Construction Equipment Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 4:09 pm

Market Cap 14,795 Cr.
Current Price 1,242
High / Low1,695/780
Stock P/E40.5
Book Value 116
Dividend Yield0.16 %
ROCE42.3 %
ROE30.6 %
Face Value 2.00
PEG Ratio1.06

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Action Construction Equipment Ltd

Competitors of Action Construction Equipment Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Brady & Morris Engineering Company Ltd 370 Cr. 1,6432,511/47338.7 1250.00 %40.3 %43.3 % 10.0
BEML Ltd 15,787 Cr. 3,7915,489/2,24355.3 6490.54 %15.2 %11.0 % 10.0
Action Construction Equipment Ltd 14,795 Cr. 1,2421,695/78040.5 1160.16 %42.3 %30.6 % 2.00
Industry Average10,317.33 Cr2,225.3344.83296.670.23%32.60%28.30%7.33

All Competitor Stocks of Action Construction Equipment Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales322361437511498492556614652673753836734
Expenses291326397463457447494541570584650706636
Operating Profit3035394741456273828910313099
OPM %9%10%9%9%8%9%11%12%13%13%14%16%13%
Other Income2235246831617232128
Interest33242233346117
Depreciation4444544555677
Profit before tax26303744594562689097114133112
Tax %26%23%26%20%23%25%25%31%25%24%23%26%25%
Net Profit19232735453447476874889884
EPS in Rs1.701.922.302.973.652.853.904.005.676.217.418.277.07

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8576686165996377511,0871,3431,1561,2271,6302,1602,692
Expenses8046395915806077129951,2451,0651,1081,4781,9392,345
Operating Profit532925193139929892119151221347
OPM %6%4%4%3%5%5%8%7%8%10%9%10%13%
Other Income55512108810415114159
Interest7101013141614121512101016
Depreciation13141510111212121314151822
Profit before tax3710481519748468108137234369
Tax %27%39%24%35%42%27%30%33%23%26%24%26%
Net Profit2763591452565280105173277
EPS in Rs3.050.750.460.670.851.314.444.784.637.038.8214.4123.29
Dividend Payout %7%27%22%30%24%23%11%10%11%7%7%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-77.78%-50.00%66.67%80.00%55.56%271.43%7.69%-7.14%53.85%31.25%64.76%
Change in YoY Net Profit Growth (%)0.00%27.78%116.67%13.33%-24.44%215.87%-263.74%-14.84%60.99%-22.60%33.51%

Action Construction Equipment Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:17%
3 Years:33%
TTM:23%
Compounded Profit Growth
10 Years:60%
5 Years:43%
3 Years:63%
TTM:56%
Stock Price CAGR
10 Years:41%
5 Years:73%
3 Years:75%
1 Year:44%
Return on Equity
10 Years:17%
5 Years:21%
3 Years:23%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:47 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital20202023232323232324242424
Reserves2662672722593113594144205017308951,2061,360
Borrowings156150138154114785382553174114
Other Liabilities166168180183229356396429477497674934823
Total Liabilities6076056096206778178879541,0551,2821,6002,1692,321
Fixed Assets257274283315346337341412429452487580586
CWIP12472758191324244454
Investments131214171835452831179349594737
Other Assets325314305286305439493494582627739951945
Total Assets6076056096206778178879541,0551,2821,6002,1692,321

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +433840577689724886104274433
Cash from Investing Activity +-46-21-14-25-17-35-27-20-16-201-218-368
Cash from Financing Activity +-2-19-26-33-57-53-44-33-4071-41-39
Net Cash Flow-4-3-1-0212-530-271627

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow53.00-127.00-125.00-119.00-123.00-75.0014.0045.0010.0064.00120.00214.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days464149475157394767422921
Inventory Days11013311910278697912411310499100
Days Payable78969893102112105147141129119124
Cash Conversion Cycle777870562714142439189-4
Working Capital Days51553528216162124-1-16
ROCE %5%3%3%6%8%19%20%16%21%21%26%42%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.76%66.76%66.76%66.76%66.76%66.76%66.76%66.76%66.76%66.76%66.76%65.41%
FIIs5.26%3.26%4.84%4.65%4.86%4.97%5.63%6.51%8.96%8.81%9.35%10.13%
DIIs3.96%3.88%3.49%4.15%4.56%3.44%3.54%3.45%2.79%2.61%2.21%1.79%
Public24.02%26.10%24.92%24.44%23.83%24.84%24.08%23.28%21.48%21.77%21.64%22.61%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.06%0.06%0.06%
No. of Shareholders79,26495,01092,88892,54683,82091,63085,31988,8301,04,2471,14,4181,31,2561,74,717

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Edelweiss Small Cap Fund440,9171.3643.08440,9172024-11-130%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)27.5614.419.027.034.57
Diluted EPS (Rs.)27.5614.419.027.034.57
Cash EPS (Rs.)29.5116.0410.118.265.77
Book Value[Excl.RevalReserv]/Share (Rs.)103.4077.2763.3546.1339.00
Book Value[Incl.RevalReserv]/Share (Rs.)103.4077.2763.3546.1339.00
Revenue From Operations / Share (Rs.)244.65181.36136.84108.14101.89
PBDIT / Share (Rs.)40.3322.0013.9811.838.43
PBIT / Share (Rs.)38.3820.4912.6810.607.29
PBT / Share (Rs.)36.4319.6311.539.535.99
Net Profit / Share (Rs.)27.5614.538.827.034.62
NP After MI And SOA / Share (Rs.)27.5514.418.827.034.63
PBDIT Margin (%)16.4812.1310.2110.948.27
PBIT Margin (%)15.6811.299.269.807.15
PBT Margin (%)14.8910.828.428.805.88
Net Profit Margin (%)11.268.006.446.504.53
NP After MI And SOA Margin (%)11.267.946.446.504.53
Return on Networth / Equity (%)26.6818.6813.9215.2511.86
Return on Capital Employeed (%)36.7226.0419.5821.4216.88
Return On Assets (%)15.1210.728.187.565.51
Long Term Debt / Equity (X)0.000.000.000.030.06
Total Debt / Equity (X)0.000.010.010.090.16
Asset Turnover Ratio (%)1.551.501.401.221.26
Current Ratio (X)1.381.381.401.201.05
Quick Ratio (X)0.770.740.740.650.46
Inventory Turnover Ratio (X)4.274.203.983.273.35
Dividend Payout Ratio (NP) (%)0.004.165.400.0026.29
Dividend Payout Ratio (CP) (%)0.003.764.710.0021.07
Earning Retention Ratio (%)0.0095.8494.600.0073.71
Cash Earning Retention Ratio (%)0.0096.2495.290.0078.93
Interest Coverage Ratio (X)20.7325.4712.1110.986.53
Interest Coverage Ratio (Post Tax) (X)15.1617.818.647.524.58
Enterprise Value (Cr.)16879.394806.142856.891768.13458.10
EV / Net Operating Revenue (X)5.792.231.751.440.39
EV / EBITDA (X)35.1418.3417.1613.174.79
MarketCap / Net Operating Revenue (X)5.832.241.761.430.34
Retention Ratios (%)0.0095.8394.590.0073.70
Price / BV (X)13.815.283.803.350.88
Price / Net Operating Revenue (X)5.832.241.761.430.34
EarningsYield0.010.030.030.040.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Action Construction Equipment Ltd as of November 17, 2024 is: 1,439.89

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Action Construction Equipment Ltd is Undervalued by 15.93% compared to the current share price 1,242.00

Intrinsic Value of Action Construction Equipment Ltd as of November 17, 2024 is: 1,989.06

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Action Construction Equipment Ltd is Undervalued by 60.15% compared to the current share price 1,242.00

Last 5 Year EPS CAGR: 38.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 18.50, which is a positive sign.
  3. The company has higher reserves (558.46 cr) compared to borrowings (87.38 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (318.23 cr) and profit (89.77 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 35.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Action Construction Equipment Ltd:
    1. Net Profit Margin: 11.26%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 36.72% (Industry Average ROCE: 32.6%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 26.68% (Industry Average ROE: 28.3%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 15.16
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.77
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 40.5 (Industry average Stock P/E: 44.83)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Action Construction Equipment Ltd. is a Public Limited Listed company incorporated on 13/01/1995 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899HR1995PLC053860 and registration number is 053860. Currently Company is involved in the business activities of Manufacture of motor vehicles. Company’s Total Operating Revenue is Rs. 1630.34 Cr. and Equity Capital is Rs. 23.82 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto - Construction VehiclesDudhola Link Road, Village Dudhola, Palwal District Haryana 121102cs@ace-cranes.com
http://www.ace-cranes.com
Management
NamePosition Held
Mr. Vijay AgarwalChairman & Managing Director
Mrs. Mona AgarwalWhole Time Director
Mr. Sorab AgarwalWhole Time Director
Mrs. Surbhi GargWhole Time Director
Mr. Avinash Parkash GandhiIndependent Director
Mr. Shriniwas VashishtIndependent Director
Dr. Jagan Nath ChamberIndependent Director
Dr. Divya SingalIndependent Woman Director

FAQ

What is the latest intrinsic value of Action Construction Equipment Ltd?

The latest intrinsic value of Action Construction Equipment Ltd as on 17 November 2024 is ₹1439.89, which is 15.93% higher than the current market price of ₹1,242.00.

What is the Market Cap of Action Construction Equipment Ltd?

The Market Cap of Action Construction Equipment Ltd is 14,795 Cr..

What is the current Stock Price of Action Construction Equipment Ltd as on 17 November 2024?

The current stock price of Action Construction Equipment Ltd as on 17 November 2024 is ₹1,242.

What is the High / Low of Action Construction Equipment Ltd stocks in FY 2024?

In FY 2024, the High / Low of Action Construction Equipment Ltd stocks is 1,695/780.

What is the Stock P/E of Action Construction Equipment Ltd?

The Stock P/E of Action Construction Equipment Ltd is 40.5.

What is the Book Value of Action Construction Equipment Ltd?

The Book Value of Action Construction Equipment Ltd is 116.

What is the Dividend Yield of Action Construction Equipment Ltd?

The Dividend Yield of Action Construction Equipment Ltd is 0.16 %.

What is the ROCE of Action Construction Equipment Ltd?

The ROCE of Action Construction Equipment Ltd is 42.3 %.

What is the ROE of Action Construction Equipment Ltd?

The ROE of Action Construction Equipment Ltd is 30.6 %.

What is the Face Value of Action Construction Equipment Ltd?

The Face Value of Action Construction Equipment Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Action Construction Equipment Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE