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Action Construction Equipment

NSEI:ACE
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACE
NSEI
₹10B
Market Cap
  1. Home
  2. IN
  3. Capital Goods
Company description

Action Construction Equipment Limited manufactures and supplies material handling and construction equipment primarily in India. The last earnings update was 64 days ago. More info.


Add to Portfolio Compare Print
  • Action Construction Equipment has significant price volatility in the past 3 months.
ACE Share Price and Events
7 Day Returns
-7.7%
NSEI:ACE
-2.2%
IN Machinery
-0.5%
IN Market
1 Year Returns
-38.1%
NSEI:ACE
-10.9%
IN Machinery
-2.4%
IN Market
ACE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Action Construction Equipment (ACE) -7.7% -18% -23.8% -38.1% 67.9% 149.7%
IN Machinery -2.2% -2.8% -10.7% -10.9% 5.8% 51%
IN Market -0.5% -2% -4.8% -2.4% 21.3% 31.2%
1 Year Return vs Industry and Market
  • ACE underperformed the Machinery industry which returned -10.9% over the past year.
  • ACE underperformed the Market in India which returned -2.4% over the past year.
Price Volatility
ACE
Industry
5yr Volatility vs Market

Value

 Is Action Construction Equipment undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Action Construction Equipment to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Action Construction Equipment.

NSEI:ACE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:ACE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.081 (1 + (1- 35%) (4.57%))
1.076
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.076 * 8.6%)
16.8%

Discounted Cash Flow Calculation for NSEI:ACE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Action Construction Equipment is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:ACE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.8%)
2020 565.95 Est @ 10.54% 484.54
2021 620.52 Est @ 9.64% 454.83
2022 676.46 Est @ 9.01% 424.50
2023 734.46 Est @ 8.57% 394.60
2024 795.18 Est @ 8.27% 365.76
2025 859.21 Est @ 8.05% 338.36
2026 927.11 Est @ 7.9% 312.57
2027 999.38 Est @ 7.8% 288.47
2028 1,076.56 Est @ 7.72% 266.04
2029 1,159.14 Est @ 7.67% 245.24
Present value of next 10 years cash flows ₹3,574.91
NSEI:ACE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹1,159.14 × (1 + 7.55%) ÷ (16.8% – 7.55%)
₹13,472.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹13,472.96 ÷ (1 + 16.8%)10
₹2,850.52
NSEI:ACE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹3,574.91 + ₹2,850.52
₹6,425.43
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹6,425.43 / 115.93
₹55.43
NSEI:ACE Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:ACE represents 0.99937x of BSE:532762
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99937x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 55.43 x 0.99937
₹55.39
Value per share (INR) From above. ₹55.39
Current discount Discount to share price of ₹79.90
= -1 x (₹79.90 - ₹55.39) / ₹55.39
-44.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Action Construction Equipment is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Action Construction Equipment's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Action Construction Equipment's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:ACE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹4.78
BSE:532762 Share Price ** BSE (2019-07-19) in INR ₹79.95
India Machinery Industry PE Ratio Median Figure of 145 Publicly-Listed Machinery Companies 13.48x
India Market PE Ratio Median Figure of 2,834 Publicly-Listed Companies 14.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Action Construction Equipment.

NSEI:ACE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532762 Share Price ÷ EPS (both in INR)

= 79.95 ÷ 4.78

16.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Action Construction Equipment is overvalued based on earnings compared to the IN Machinery industry average.
  • Action Construction Equipment is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Action Construction Equipment's expected growth come at a high price?
Raw Data
NSEI:ACE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
5.7%per year
India Machinery Industry PEG Ratio Median Figure of 26 Publicly-Listed Machinery Companies 1.52x
India Market PEG Ratio Median Figure of 535 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Action Construction Equipment, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Action Construction Equipment's assets?
Raw Data
NSEI:ACE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹37.32
BSE:532762 Share Price * BSE (2019-07-19) in INR ₹79.95
India Machinery Industry PB Ratio Median Figure of 167 Publicly-Listed Machinery Companies 1.28x
India Market PB Ratio Median Figure of 3,669 Publicly-Listed Companies 0.94x
NSEI:ACE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532762 Share Price ÷ Book Value per Share (both in INR)

= 79.95 ÷ 37.32

2.14x

* Primary Listing of Action Construction Equipment.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Action Construction Equipment is overvalued based on assets compared to the IN Machinery industry average.
X
Value checks
We assess Action Construction Equipment's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Action Construction Equipment has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Action Construction Equipment expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • No analysts cover Action Construction Equipment, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Action Construction Equipment expected to grow at an attractive rate?
  • Action Construction Equipment's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Action Construction Equipment's earnings growth is positive but not above the India market average.
  • Unable to compare Action Construction Equipment's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:ACE Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:ACE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 5.7%
India Machinery Industry Earnings Growth Rate Market Cap Weighted Average 12%
India Machinery Industry Revenue Growth Rate Market Cap Weighted Average 11.8%
India Market Earnings Growth Rate Market Cap Weighted Average 17%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:ACE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:ACE Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31 18,475 1
NSEI:ACE Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 13,425 560
2018-03-31 10,865 894 534
2017-03-31 7,511 762 153

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Action Construction Equipment's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Action Construction Equipment is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:ACE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Action Construction Equipment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ACE Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31
NSEI:ACE Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 4.78
2018-03-31 4.55
2017-03-31 1.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Action Construction Equipment will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Action Construction Equipment's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Action Construction Equipment has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Action Construction Equipment performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Action Construction Equipment's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Action Construction Equipment has delivered over 20% year on year earnings growth in the past 5 years.
  • Action Construction Equipment's 1-year earnings growth is less than its 5-year average (4.9% vs 47.4%)
  • Action Construction Equipment's earnings growth has not exceeded the IN Machinery industry average in the past year (4.9% vs 20%).
Earnings and Revenue History
Action Construction Equipment's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Action Construction Equipment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:ACE Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 13,425.27 560.41 751.07
2018-03-31 10,865.48 533.99 720.57
2017-03-31 7,510.58 153.29 633.79
2016-03-31 6,373.36 98.13 773.16
2015-03-31 5,992.32 66.46 655.67
2014-03-31 6,163.18 45.81 887.47
2013-03-31 6,684.03 74.04 965.66

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Action Construction Equipment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Action Construction Equipment used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
  • Action Construction Equipment has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Action Construction Equipment's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Action Construction Equipment has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Action Construction Equipment's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Action Construction Equipment's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Action Construction Equipment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Action Construction Equipment's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Action Construction Equipment's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 10.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Action Construction Equipment Company Filings, last reported 3 months ago.

NSEI:ACE Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,378.38 439.00 404.19
2018-03-31 3,824.54 782.99 419.59
2017-03-31 3,342.90 1,136.45 306.63
2016-03-31 3,130.72 1,242.65 241.45
2015-03-31 2,919.40 1,377.17 157.71
2014-03-31 2,875.74 1,496.14 254.15
2013-03-31 2,858.61 1,562.13 276.41
  • Action Construction Equipment's level of debt (10%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (52% vs 10% today).
  • Debt is well covered by operating cash flow (203.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).
X
Financial health checks
We assess Action Construction Equipment's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Action Construction Equipment has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Action Construction Equipment's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.63%
Current annual income from Action Construction Equipment dividends.
If you bought ₹2,000 of Action Construction Equipment shares you are expected to receive ₹13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Action Construction Equipment's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.56%).
  • Action Construction Equipment's dividend is below the markets top 25% of dividend payers in India (2.23%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:ACE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
India Machinery Industry Average Dividend Yield Market Cap Weighted Average of 98 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1446 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:ACE Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2020-03-31
NSEI:ACE Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-16 0.500 0.519
2018-05-21 0.500 0.470
2017-08-23 0.300 0.257
2017-06-12 0.300 0.438
2017-05-19 0.300 0.470
2016-08-22 0.200 0.397
2016-05-19 0.200 0.460
2016-03-15 0.400 1.018
2015-06-01 0.200 0.483
2014-05-21 0.100 0.289
2013-07-29 0.200 1.623
2013-05-27 0.200 1.675
2012-09-05 0.200 1.125
2011-05-30 2.000 5.899
2010-04-06 1.000 1.946
2009-06-01 0.400 1.143
2009-05-28 0.400 1.181

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Action Construction Equipment's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (9.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Action Construction Equipment's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Action Construction Equipment afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Action Construction Equipment has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Action Construction Equipment's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Vijay Agarwal
COMPENSATION ₹28,586,000
AGE 70
CEO Bio

Mr. Vijay Agarwal, B.E (Mech. Engg), MBA, serves as the Executive Chairman and Managing Director of Action Construction Equipments Ltd. Mr. Agarwal has experience in material handling and heavy engineering industry. Mr. Agarwal started his career with Bhartiya Cuttler Hammer Ltd., and worked there for ten years. Thereafter, he joined Escorts Ltd., in the Industrial Equipment Division as Senior Divisional Manager and worked there for eight years in different departments and looked after Purchase, Production and after sales service functions. From 1993, he was Business Head in Delhi Automobiles Ltd., for a period of three years. He then started Action Construction Equipments (P) Ltd. in the year 1995. He has vast experience in this field and due to his efforts, Action Construction has achieved success in a short span of 11 years, with a vision to become leading manufacturer of construction equipment in India. He serves as an Executive and Non Independent Director of Action Construction Equipment Ltd. He served as a Member of the Board of Directors at ACE Steelfab Pvt. Ltd. Mr. Agarwal holds a B.E. in Mechanical and an M.B.A. from FMS, Delhi.

CEO Compensation
  • Vijay's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Vijay's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Action Construction Equipment management team in years:

5
Average Tenure
58
Average Age
  • The average tenure for the Action Construction Equipment management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Vijay Agarwal

TITLE
Chairman & MD
COMPENSATION
₹29M
AGE
70

Rajan Luthra

TITLE
Chief Financial Officer
COMPENSATION
₹6M
AGE
58
TENURE
5 yrs

Anil Kumar

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹518K
TENURE
2 yrs

Sorab Agarwal

TITLE
Whole-Time Director
COMPENSATION
₹5M
AGE
42

Mona Agarwal

TITLE
Whole-Time Director
COMPENSATION
₹14M
AGE
64

Surbhi Garg

TITLE
Whole-Time Director
COMPENSATION
₹5M
AGE
41

Sanjay Nagar

TITLE
Deputy General Manager of Human Resource and Administration
AGE
50
TENURE
13.3 yrs

L. Chaudhary

TITLE
Design and Development Consultant
AGE
73
Board of Directors Tenure

Average tenure and age of the Action Construction Equipment board of directors in years:

13.8
Average Tenure
67
Average Age
  • The average tenure for the Action Construction Equipment board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Vijay Agarwal

TITLE
Chairman & MD
COMPENSATION
₹29M
AGE
70

Sorab Agarwal

TITLE
Whole-Time Director
COMPENSATION
₹5M
AGE
42
TENURE
21.3 yrs

Mona Agarwal

TITLE
Whole-Time Director
COMPENSATION
₹14M
AGE
64
TENURE
24.5 yrs

Surbhi Garg

TITLE
Whole-Time Director
COMPENSATION
₹5M
AGE
41
TENURE
7.3 yrs

Subhash Verma

TITLE
Independent Non-Executive Director
COMPENSATION
₹165K
AGE
74
TENURE
13.8 yrs

Amar Singhal

TITLE
Independent Non-Executive Director
COMPENSATION
₹165K
AGE
64
TENURE
13.3 yrs

Keshav Agarwal

TITLE
Independent Non-Executive Director
COMPENSATION
₹60K
AGE
78
TENURE
9.5 yrs

Girish Mehra

TITLE
Independent Non-Executive Director
COMPENSATION
₹120K
AGE
87
TENURE
13.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
29. Jan 19 Buy Sorab Agarwal Individual 28. Jan 19 28. Jan 19 475,000 ₹84.08 ₹39,938,192
X
Management checks
We assess Action Construction Equipment's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Action Construction Equipment has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Did Action Construction Equipment Limited's (NSE:ACE) 13% ROE Fare Against The Industry?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Action Construction Equipment: 13% = ₹560m ÷ ₹4.4b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Action Construction Equipment Have A Good Return On Equity? … Combining Action Construction Equipment's Debt And Its 13% Return On Equity Although Action Construction Equipment does use debt, its debt to equity ratio of 0.10 is still low.

Simply Wall St -

Is Action Construction Equipment Limited (NSE:ACE) Excessively Paying Its CEO?

At the time of writing our data says that Action Construction Equipment Limited has a market cap of ₹11b, and is paying total annual CEO compensation of ₹29m. … Boasting a total shareholder return of 111% over three years, Action Construction Equipment Limited has done well by shareholders. … We compared total CEO remuneration at Action Construction Equipment Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Investors Who Bought Action Construction Equipment (NSE:ACE) Shares Five Years Ago Are Now Up 208%

One great example is Action Construction Equipment Limited (NSE:ACE) which saw its share price drive 208% higher over five years. … During five years of share price growth, Action Construction Equipment achieved compound earnings per share (EPS) growth of 59% per year. … A Different Perspective Investors in Action Construction Equipment had a tough year, with a total loss of 30% (including dividends), against a market gain of about 0.05%.

Simply Wall St -

What Kind Of Shareholder Owns Most Action Construction Equipment Limited (NSE:ACE) Stock?

As Charlie Munger said 'Show me the incentive and I will show you the outcome.' With a market capitalization of ₹12b, Action Construction Equipment is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Action Construction Equipment NSEI:ACE Ownership Summary, June 10th 2019 What Does The Institutional Ownership Tell Us About Action Construction Equipment? … Insider Ownership Of Action Construction Equipment The definition of company insiders can be subjective, and does vary between jurisdictions.

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Is Action Construction Equipment Limited (NSE:ACE) Investing Effectively In Its Business?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Action Construction Equipment: 0.17 = ₹860m ÷ (₹8.9b - ₹3.9b) (Based on the trailing twelve months to March 2019.) So, Action Construction Equipment has an ROCE of 17%. … Action Construction Equipment's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … Action Construction Equipment has a medium level of current liabilities, which would boost the ROCE.

Simply Wall St -

What Does Action Construction Equipment Limited's (NSE:ACE) P/E Ratio Tell You?

View our latest analysis for Action Construction Equipment How Do You Calculate Action Construction Equipment's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Action Construction Equipment: P/E of 18.9 = ₹90.35 ÷ ₹4.78 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … Action Construction Equipment saw earnings per share improve by -5.0% last year.

Simply Wall St -

Here's Why I Think Action Construction Equipment (NSE:ACE) Might Deserve Your Attention Today

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Action Construction Equipment (NSE:ACE). … How Fast Is Action Construction Equipment Growing Its Earnings Per Share. … Action Construction Equipment shareholders can take confidence from the fact that EBIT margins are up from 3.9% to 7.4%, and revenue is growing.

Simply Wall St -

At ₹111, Is Action Construction Equipment Limited (NSE:ACE) Worth Looking At Closely?

Action Construction Equipment Limited (NSE:ACE), which is in the machinery business, and is based in India,. … As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Let’s take a look at Action Construction Equipment’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

If You Had Bought Action Construction Equipment (NSE:ACE) Shares Five Years Ago You'd Have Made 637%

Just think about the savvy investors who held Action Construction Equipment Limited (NSE:ACE) shares for the last five years, while they gained 637%. … During five years of share price growth, Action Construction Equipment achieved compound earnings per share (EPS) growth of 43% per year. … So the EPS growth rate is rather close to the annualized share price gain of 49% per year.

Simply Wall St -

How Much Of Action Construction Equipment Limited (NSE:ACE) Do Insiders Own?

Every investor in Action Construction Equipment Limited (NSE:ACE) should be aware of the most powerful shareholder groups. … With a market capitalization of ₹11b, Action Construction Equipment is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Action Construction Equipment

Simply Wall St -

Company Info

Description

Action Construction Equipment Limited manufactures and supplies material handling and construction equipment primarily in India. The company operates through four segments: Cranes, Construction Equipment, Material Handling, and Agri Equipment. It offers mobile cranes, such as pick and carry cranes, tower cranes, crawler cranes, backhoes and wheeled loaders, motor graders, vibratory rollers, concrete placing booms, forklift trucks, truck mounted cranes, and mobile tower cranes; and agriculture equipment, such as tractors, harvestors, rotavators, etc., as well as other construction equipment. The company serves various infrastructure, construction, heavy engineering, and industrial projects. Action Construction Equipment Limited was incorporated in 1995 and is headquartered in Palwal, India.

Details
Name: Action Construction Equipment Limited
ACE
Exchange: NSEI
Founded: 1995
₹9,598,604,241
115,925,172
Website: http://www.ace-cranes.com
Address: Action Construction Equipment Limited
Dudhola Link Road,
Vill. Dudhola,
Palwal,
Haryana, 121102,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532762 Equity Shares Mumbai Stock Exchange IN INR 26. Sep 2006
NSEI ACE Equity Shares National Stock Exchange of India IN INR 26. Sep 2006
Number of employees
Current staff
Staff numbers
0
Action Construction Equipment employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 12:57
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/16
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.