Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532762 | NSE: ACE

Fundamental Analysis of Action Construction Equipment Ltd

About the Company - Action Construction Equipment Ltd

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

Basic Stock Data of Action Construction Equipment Ltd

Last Updated: April 9, 2024, 10:06 pm

Market Cap 19,089 Cr.
Current Price 1,603
High / Low1,695/398
Stock P/E69.0
Book Value 87.7
Dividend Yield0.06 %
ROCE26.2 %
ROE18.8 %
Face Value 2.00
PEG Ratio1.81

Competitors of Action Construction Equipment Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Kabra Extrusion Technik Ltd 1,380 Cr. 395515/29043.6 1290.89 %10.5 %7.59 % 5.00
Bajaj Steel Industries Ltd 741 Cr. 1,4251,627/93614.5 5720.22 %30.7 %24.8 % 5.00
Bharat Dynamics Ltd 33,850 Cr. 1,8471,985/90071.0 1840.51 %15.6 %11.3 % 10.0
Inox Wind Ltd 19,723 Cr. 605663/114 52.10.00 %4.25 %1.71 % 10.0
Techno Electric & Engineering Company Ltd 11,470 Cr. 1,0661,193/34357.8 1850.56 %8.18 %9.91 % 2.00
Industry Average13,432.80 Cr1,067.6037.38224.420.44%13.85%11.06%6.40

Action Construction Equipment Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales400457322361437511498492556614652673753
Expenses355408291326397463457447494541570584650
Operating Profit455030353947414562738289103
OPM %11%11%9%10%9%9%8%9%11%12%13%13%14%
Other Income38223524683161723
Interest2333242233346
Depreciation4444445445556
Profit before tax435126303744594562689097114
Tax %28%24%26%23%26%20%23%25%25%31%25%24%23%
Net Profit31391923273545344747687488
EPS in Rs2.723.401.701.922.302.973.652.853.904.005.676.217.41

Action Construction Equipment Ltd Quarterly Chart

Action Construction Equipment Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8576686165996377511,0871,3431,1561,2271,6302,1602,495
Expenses8046395915806077129951,2451,0651,1081,4781,9392,189
Operating Profit532925193139929892119151221306
OPM %6%4%4%3%5%5%8%7%8%10%9%10%12%
Other Income55512108810415114144
Interest7101013141614121512101013
Depreciation13141510111212121314151820
Profit before tax3710481519748468108137234317
Tax %27%39%24%35%42%27%30%33%23%26%24%26%
Net Profit2763591452565280105173235
EPS in Rs3.050.750.460.670.851.314.444.784.637.038.8214.4119.78
Dividend Payout %7%27%22%30%24%23%11%10%11%7%7%7%

Action Construction Equipment Ltd 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 Growth

Compounded Sales Growth
10 Years:17%
5 Years:17%
3 Years:33%
TTM:35%
Compounded Profit Growth
10 Years:60%
5 Years:43%
3 Years:63%
TTM:109%
Stock Price CAGR
10 Years:48%
5 Years:67%
3 Years:107%
1 Year:214%
Return on Equity
10 Years:17%
5 Years:21%
3 Years:23%
Last Year:31%

Last Updated: April 9, 2024, 10:06 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital19202020232323232323242424
Reserves2612662672722593113594144205017308951,021
Preference Capital00003001700000
Borrowings1451561501381241146153825531761
Other Liabilities155166168180213229373396429477497674767
Total Liabilities5806076056096206778178879541,0551,2821,6001,872
Fixed Assets232257274283315346337341412429452487516
CWIP7124727581913242455
Investments8131214171835452831179349407
Other Assets334325314305286305439493494582627739894
Total Assets5806076056096206778178879541,0551,2821,6001,872

Action Construction Equipment Ltd Reserves and Borrowings Chart

Action Construction Equipment Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 15433840577689724886104274
Cash from Investing Activity -72-46-21-14-25-17-35-27-20-16-201-218
Cash from Financing Activity 54-2-19-26-33-57-53-44-33-4071-41
Net Cash Flow-3-4-3-1-0212-530-2716

Action Construction Equipment Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days364641494751573947674229
Inventory Days7811013311910278697912411310499
Days Payable4478969893102112105147141129119
Cash Conversion Cycle70777870562714142439189
Working Capital Days4851553528216162124-1
ROCE %12%5%3%3%6%8%19%20%16%21%21%26%

Action Construction Equipment Ltd Financial Efficiency Indicators Chart

Action Construction Equipment Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters70.05%70.05%66.76%66.76%66.76%66.76%66.76%66.76%66.76%66.76%66.76%66.76%
FIIs3.15%4.23%5.26%3.26%4.84%4.65%4.86%4.97%5.63%6.51%8.96%8.81%
DIIs1.42%2.01%3.96%3.88%3.49%4.15%4.56%3.44%3.54%3.45%2.79%2.61%
Public25.37%23.71%24.02%26.10%24.92%24.44%23.83%24.84%24.08%23.28%21.48%21.77%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.06%
No. of Shareholders41,11061,09479,26495,01092,88892,54683,82091,63085,31988,8301,04,2471,14,418

Action Construction Equipment Ltd Shareholding Pattern Chart

No. of Action Construction Equipment Ltd Shareholders

Action Construction Equipment Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Edelweiss Small Cap Fund4409171.3236.96
Motilal Oswal Nifty Microcap 250 Index Fund434970.643.65
Groww Nifty Total Market Index Fund1130.020.01

Action Construction Equipment Ltd ROCE Trend

Action Construction Equipment Ltd EPS Trend

Action Construction Equipment Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)14.419.027.034.574.78
Diluted EPS (Rs.)14.419.027.034.574.78
Cash EPS (Rs.)16.0410.118.265.775.78
Book Value[Excl.RevalReserv]/Share (Rs.)77.2763.3546.1339.0037.32
Book Value[Incl.RevalReserv]/Share (Rs.)77.2763.3546.1339.0037.32
Revenue From Operations / Share (Rs.)181.36136.84108.14101.89114.43
PBDIT / Share (Rs.)22.0013.9811.838.439.16
PBIT / Share (Rs.)20.4912.6810.607.298.16
PBT / Share (Rs.)19.6311.539.535.997.18
Net Profit / Share (Rs.)14.538.827.034.624.78
NP After MI And SOA / Share (Rs.)14.418.827.034.634.78
PBDIT Margin (%)12.1310.2110.948.278.00
PBIT Margin (%)11.299.269.807.157.13
PBT Margin (%)10.828.428.805.886.27
Net Profit Margin (%)8.006.446.504.534.17
NP After MI And SOA Margin (%)7.946.446.504.534.17
Return on Networth / Equity (%)18.6813.9215.2511.8612.80
Return on Capital Employeed (%)26.0419.5821.4216.8819.40
Return On Assets (%)10.728.187.565.516.31
Long Term Debt / Equity (X)0.000.000.030.060.08
Total Debt / Equity (X)0.010.010.090.160.10
Asset Turnover Ratio (%)1.501.401.221.261.58
Current Ratio (X)1.381.401.201.051.13
Quick Ratio (X)0.740.740.650.460.59
Inventory Turnover Ratio (X)4.203.983.273.355.67
Dividend Payout Ratio (NP) (%)4.165.400.0026.2910.46
Dividend Payout Ratio (CP) (%)3.764.710.0021.078.65
Earning Retention Ratio (%)95.8494.600.0073.7189.54
Cash Earning Retention Ratio (%)96.2495.290.0078.9391.35
Interest Coverage Ratio (X)25.4712.1110.986.539.33
Interest Coverage Ratio (Post Tax) (X)17.818.647.524.585.86
Enterprise Value (Cr.)4806.142856.891768.13458.101382.57
EV / Net Operating Revenue (X)2.231.751.440.391.03
EV / EBITDA (X)18.3417.1613.174.7912.86
MarketCap / Net Operating Revenue (X)2.241.761.430.341.01
Retention Ratios (%)95.8394.590.0073.7089.53
Price / BV (X)5.283.803.350.883.08
Price / Net Operating Revenue (X)2.241.761.430.341.01
EarningsYield0.030.030.040.130.04

Action Construction Equipment Ltd Profitability Ratios (%)

Action Construction Equipment Ltd Liquidity Ratios

Action Construction Equipment Ltd Liquidity Ratios (%)

Action Construction Equipment Ltd Interest Coverage Ratios (X)

Action Construction Equipment Ltd Valuation Ratios

Fair Value

Fair Value: ₹1,138.33

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.

Overvalued: 28.99% compared to the current price ₹1603

Intrinsic Value: ₹1,572.48

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 1.90% compared to the current price ₹1603

Last 5 Year EPS CAGR: 38.14%

*Investments are subject to market risks

Strength and Weakness of Action Construction Equipment Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 23.83, which is a positive sign.
  2. The company has higher reserves (459.69 cr) compared to borrowings (3.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (318.23 cr) and profit (89.77 cr) over the years.
  1. The stock has a low average ROCE of 13.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 41.33, which may not be favorable.

Should I Buy Action Construction Equipment Ltd Share Now?

  • 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: 8.00%
      • 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: 26.04% (Industry Average ROCE: 25.12%)
      • 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%: 18.68% (Industry Average ROE: 28.26%)
      • 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): 17.81
      • 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: 0.74
      • 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: 69.0 (Industry average Stock P/E: 49.88)
      • 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: 0.01
      • 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:

FAQ

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

The latest fair value of Action Construction Equipment Ltd is 1138.33.

What is the Market Cap of Action Construction Equipment Ltd?

The Market Cap of Action Construction Equipment Ltd is 19,089 Cr..

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

The current stock price of Action Construction Equipment Ltd as on 17 April 2024 is 1,603.

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 ₹1,695/398.

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

The Stock P/E of Action Construction Equipment Ltd is 69.0.

What is the Book Value of Action Construction Equipment Ltd?

The Book Value of Action Construction Equipment Ltd is 87.7.

What is the Dividend Yield of Action Construction Equipment Ltd?

The Dividend Yield of Action Construction Equipment Ltd is 0.06 %.

What is the ROCE of Action Construction Equipment Ltd?

The ROCE of Action Construction Equipment Ltd is 26.2 %.

What is the ROE of Action Construction Equipment Ltd?

The ROE of Action Construction Equipment Ltd is 18.8 %.

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