NSEI:ACE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Action Construction Equipment

Executive Summary

Action Construction Equipment Limited manufactures and supplies material handling and construction equipment primarily in India.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Action Construction Equipment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

ACE

-0.4%

IN Machinery

-0.5%

IN Market


1 Year Return

-22.1%

ACE

-7.9%

IN Machinery

1.6%

IN Market

Return vs Industry: ACE underperformed the Indian Machinery industry which returned -9.2% over the past year.

Return vs Market: ACE underperformed the Indian Market which returned 1.4% over the past year.


Shareholder returns

ACEIndustryMarket
7 Day-0.6%-0.4%-0.5%
30 Day-11.1%-1.3%2.4%
90 Day27.5%14.0%18.6%
1 Year-20.5%-22.1%-6.5%-7.9%3.6%1.6%
3 Year-14.8%-17.2%-26.8%-29.9%-2.4%-7.0%
5 Year19.0%14.4%-13.0%-18.5%24.9%15.5%

Price Volatility Vs. Market

How volatile is Action Construction Equipment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Action Construction Equipment undervalued compared to its fair value and its price relative to the market?

12.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACE (₹55.9) is trading above our estimate of fair value (₹2.08)

Significantly Below Fair Value: ACE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACE is good value based on its PE Ratio (12.2x) compared to the IN Machinery industry average (14.3x).

PE vs Market: ACE is good value based on its PE Ratio (12.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACE is overvalued based on its PB Ratio (1.4x) compared to the IN Machinery industry average (1x).


Next Steps

Future Growth

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

1.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ACE's forecast earnings growth is above the savings rate (7.2%).

Earnings vs Market: Insufficient data to determine if ACE's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ACE's revenue (1.3% per year) is forecast to grow slower than the Indian market (9.7% per year).

High Growth Revenue: ACE's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACE's Return on Equity is forecast to be low in 3 years time (11.6%).


Next Steps

Past Performance

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

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACE has high quality earnings.

Growing Profit Margin: ACE's current net profit margins (4.5%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: ACE's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: ACE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACE had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Machinery industry average (-5.6%).


Return on Equity

High ROE: ACE's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Action Construction Equipment's financial position?


Financial Position Analysis

Short Term Liabilities: ACE's short term assets (₹4.9B) exceed its short term liabilities (₹4.6B).

Long Term Liabilities: ACE's short term assets (₹4.9B) exceed its long term liabilities (₹471.2M).


Debt to Equity History and Analysis

Debt Level: ACE's debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: ACE's debt to equity ratio has reduced from 47.1% to 16.7% over the past 5 years.

Debt Coverage: ACE's debt is well covered by operating cash flow (64.7%).

Interest Coverage: ACE's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACE's dividend (0.89%) is higher than the bottom 25% of dividend payers in the Indian market (0.67%).

High Dividend: ACE's dividend (0.89%) is low compared to the top 25% of dividend payers in the Indian market (2.78%).


Stability and Growth of Payments

Stable Dividend: ACE's dividend payments have been volatile in the past 10 years.

Growing Dividend: ACE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.9%), ACE's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACE's dividends in 3 years are forecast to be thoroughly covered by earnings (7.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Vijay Agarwal (71 yo)

no data

Tenure

₹30,609,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Vijay's total compensation ($USD408.53K) is above average for companies of similar size in the Indian market ($USD49.49K).

Compensation vs Earnings: Vijay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vijay Agarwal
Chairman & MDno data₹30.61m36.79%
₹ 2.4b
Rajan Luthra
Chief Financial Officer6.08yrs₹6.18m0.000080%
₹ 5.1k
Anil Kumar
Compliance Officer & Company Secretary3.08yrs₹572.00kno data
Sorab Agarwal
Whole-Time Director22.42yrs₹5.87m6.72%
₹ 430.0m
Mona Agarwal
Whole-Time Director25.58yrs₹15.08m22.77%
₹ 1.5b
Surbhi Garg
Whole-Time Director8.75yrs₹5.22m6.11%
₹ 390.9m
Sanjay Nagar
Deputy General Manager of Human Resource and Administration14.33yrsno datano data
L. Chaudhary
Design and Development Consultantno datano datano data

6.1yrs

Average Tenure

59yo

Average Age

Experienced Management: ACE's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vijay Agarwal
Chairman & MDno data₹30.61m36.79%
₹ 2.4b
Sorab Agarwal
Whole-Time Director22.42yrs₹5.87m6.72%
₹ 430.0m
Mona Agarwal
Whole-Time Director25.58yrs₹15.08m22.77%
₹ 1.5b
Surbhi Garg
Whole-Time Director8.75yrs₹5.22m6.11%
₹ 390.9m
Avinash Gandhi
Independent Non-Executive Director0.83yrno datano data
Girish Mehra
Independent Non-Executive Director14.83yrs₹165.00kno data
Subhash Verma
Independent Non-Executive Director14.83yrs₹180.00k0.013%
₹ 846.1k
Keshav Agrawal
Independent Non-Executive Director10.58yrs₹75.00kno data
Divya Singhal
Additional Independent Woman Director0.33yrno datano data

12.7yrs

Average Tenure

73yo

Average Age

Experienced Board: ACE's board of directors are seasoned and experienced ( 12.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Action Construction Equipment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Action Construction Equipment Limited
  • Ticker: ACE
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: ₹6.400b
  • Shares outstanding: 113.48m
  • Website: https://www.ace-cranes.com

Location

  • Action Construction Equipment Limited
  • Dudhola Link Road
  • Village Dudhola
  • Palwal
  • Haryana
  • 121102
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532762BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2006
ACENSEI (National Stock Exchange of India)YesEquity SharesININRSep 2006

Biography

Action Construction Equipment Limited manufactures and supplies material handling and construction equipment primarily in India. The company operates through four segments: Cranes, Construction Equipment, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 12:44
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.