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.
INDUSTRY
ADDRESS
CONTACT
Auto - Construction Vehicles
Dudhola Link Road, Village Dudhola, Palwal District Haryana 121102
Action Construction Equipment Ltd Key Financial Ratios
Month
Mar 24
Mar 23
Mar 22
Mar 21
Mar 20
FaceValue
2.00
2.00
2.00
2.00
2.00
Basic EPS (Rs.)
27.56
14.41
9.02
7.03
4.57
Diluted EPS (Rs.)
27.56
14.41
9.02
7.03
4.57
Cash EPS (Rs.)
29.51
16.04
10.11
8.26
5.77
Book Value[Excl.RevalReserv]/Share (Rs.)
103.40
77.27
63.35
46.13
39.00
Book Value[Incl.RevalReserv]/Share (Rs.)
103.40
77.27
63.35
46.13
39.00
Revenue From Operations / Share (Rs.)
244.65
181.36
136.84
108.14
101.89
PBDIT / Share (Rs.)
40.33
22.00
13.98
11.83
8.43
PBIT / Share (Rs.)
38.38
20.49
12.68
10.60
7.29
PBT / Share (Rs.)
36.43
19.63
11.53
9.53
5.99
Net Profit / Share (Rs.)
27.56
14.53
8.82
7.03
4.62
NP After MI And SOA / Share (Rs.)
27.55
14.41
8.82
7.03
4.63
PBDIT Margin (%)
16.48
12.13
10.21
10.94
8.27
PBIT Margin (%)
15.68
11.29
9.26
9.80
7.15
PBT Margin (%)
14.89
10.82
8.42
8.80
5.88
Net Profit Margin (%)
11.26
8.00
6.44
6.50
4.53
NP After MI And SOA Margin (%)
11.26
7.94
6.44
6.50
4.53
Return on Networth / Equity (%)
26.68
18.68
13.92
15.25
11.86
Return on Capital Employeed (%)
36.72
26.04
19.58
21.42
16.88
Return On Assets (%)
15.12
10.72
8.18
7.56
5.51
Long Term Debt / Equity (X)
0.00
0.00
0.00
0.03
0.06
Total Debt / Equity (X)
0.00
0.01
0.01
0.09
0.16
Asset Turnover Ratio (%)
1.55
1.50
1.40
1.22
1.26
Current Ratio (X)
1.38
1.38
1.40
1.20
1.05
Quick Ratio (X)
0.77
0.74
0.74
0.65
0.46
Inventory Turnover Ratio (X)
4.27
4.20
3.98
3.27
3.35
Dividend Payout Ratio (NP) (%)
0.00
4.16
5.40
0.00
26.29
Dividend Payout Ratio (CP) (%)
0.00
3.76
4.71
0.00
21.07
Earning Retention Ratio (%)
0.00
95.84
94.60
0.00
73.71
Cash Earning Retention Ratio (%)
0.00
96.24
95.29
0.00
78.93
Interest Coverage Ratio (X)
20.73
25.47
12.11
10.98
6.53
Interest Coverage Ratio (Post Tax) (X)
15.16
17.81
8.64
7.52
4.58
Enterprise Value (Cr.)
16879.39
4806.14
2856.89
1768.13
458.10
EV / Net Operating Revenue (X)
5.79
2.23
1.75
1.44
0.39
EV / EBITDA (X)
35.14
18.34
17.16
13.17
4.79
MarketCap / Net Operating Revenue (X)
5.83
2.24
1.76
1.43
0.34
Retention Ratios (%)
0.00
95.83
94.59
0.00
73.70
Price / BV (X)
13.81
5.28
3.80
3.35
0.88
Price / Net Operating Revenue (X)
5.83
2.24
1.76
1.43
0.34
EarningsYield
0.01
0.03
0.03
0.04
0.13
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: 1,592.77
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.
Undervalued: 14.51% compared to the current price 1391
Intrinsic Value: 2,200.25
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.
Undervalued: 58.18% compared to the current price 1391
Last 5 Year EPS CAGR: 38.14%
*Investments are subject to market risks
Strength and Weakness of Action Construction Equipment Ltd
Strength
Weakness
The stock has a low average Working Capital Days of 23.83, which is a positive sign.
The company has higher reserves (491.67 cr) compared to borrowings (85.17 cr), indicating strong financial stability.
The company has shown consistent growth in sales (318.23 cr) and profit (89.77 cr) over the years.
The stock has a low average ROCE of 13.33%, which may not be favorable.
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:
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.
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.
✓ ROE%: 26.68% (Industry Average ROE: 17.30%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
✓ Stock P/E: 50.5 (Industry average Stock P/E: 66.93)
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.
✓ Total Debt / Equity: 0.00
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 ₹1592.77.
What is the Market Cap of Action Construction Equipment Ltd?
The Market Cap of Action Construction Equipment Ltd is 16,567 Cr..
What is the current Stock Price of Action Construction Equipment Ltd as on 27 July 2024?
The current stock price of Action Construction Equipment Ltd as on 27 July 2024 is 1,391.
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 1,695/644.
What is the Stock P/E of Action Construction Equipment Ltd?
The Stock P/E of Action Construction Equipment Ltd is 50.5.
What is the Book Value of Action Construction Equipment Ltd?
The Book Value of Action Construction Equipment Ltd is 103.
What is the Dividend Yield of Action Construction Equipment Ltd?
The Dividend Yield of Action Construction Equipment Ltd is 0.07 %.
What is the ROCE of Action Construction Equipment Ltd?
The ROCE of Action Construction Equipment Ltd is 42.2 %.
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.
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
