Action Construction Equipment Limited

NSEI:ACE Stock Report

Market Cap: ₹144.2b

Action Construction Equipment Valuation

Is ACE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ACE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACE (₹1242) is trading above our estimate of fair value (₹529.88)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACE?

Key metric: As ACE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ACE. This is calculated by dividing ACE's market cap by their current earnings.
What is ACE's PE Ratio?
PE Ratio40.4x
Earnings₹3.66b
Market Cap₹144.21b

Price to Earnings Ratio vs Peers

How does ACE's PE Ratio compare to its peers?

The above table shows the PE ratio for ACE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.3x
TITAGARH Titagarh Rail Systems
49.3x28.1%₹147.9b
CRAFTSMAN Craftsman Automation
47.7x33.4%₹111.2b
500033 Force Motors
18.4xn/a₹88.2b
500048 BEML
54x36.5%₹155.4b
ACE Action Construction Equipment
40.4x13.6%₹144.2b

Price-To-Earnings vs Peers: ACE is good value based on its Price-To-Earnings Ratio (40.4x) compared to the peer average (42.3x).

Price to Earnings Ratio vs Industry

How does ACE's PE Ratio compare vs other companies in the IN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
504220 W.S. Industries (India)
4.8xn/aUS$85.82m
No more companies available in this PE range
ACE 40.4xIndustry Avg. 36.0xNo. of Companies24PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ACE is expensive based on its Price-To-Earnings Ratio (40.4x) compared to the Indian Machinery industry average (36x).

Price to Earnings Ratio vs Fair Ratio

What is ACE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.4x
Fair PE Ratio36.2x

Price-To-Earnings vs Fair Ratio: ACE is expensive based on its Price-To-Earnings Ratio (40.4x) compared to the estimated Fair Price-To-Earnings Ratio (36.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ACE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,242.00
₹1,582.50
+27.4%
7.4%₹1,700.00₹1,465.00n/a2
Nov ’25₹1,347.55
₹1,582.50
+17.4%
7.4%₹1,700.00₹1,465.00n/a2
Oct ’25₹1,391.70
₹1,520.00
+9.2%
3.6%₹1,575.00₹1,465.00n/a2
Sep ’25₹1,290.95
₹1,520.00
+17.7%
3.6%₹1,575.00₹1,465.00n/a2
Aug ’24₹724.65
₹467.50
-35.5%
7.0%₹500.00₹435.00₹1,360.352
Jul ’24₹490.10
₹467.50
-4.6%
7.0%₹500.00₹435.00₹1,460.502
Jun ’24₹474.80
₹467.50
-1.5%
7.0%₹500.00₹435.00₹1,432.202
May ’24₹417.35
₹418.50
+0.3%
3.9%₹435.00₹402.00₹1,518.802
Apr ’24₹406.90
₹418.50
+2.9%
3.9%₹435.00₹402.00₹1,606.402
Mar ’24₹352.45
₹418.50
+18.7%
3.9%₹435.00₹402.00₹1,418.502
Feb ’24₹323.75
₹365.00
+12.7%
5.5%₹385.00₹345.00₹969.652
Jan ’24₹303.85
₹365.00
+20.1%
5.5%₹385.00₹345.00₹845.902
Dec ’23₹333.55
₹365.00
+9.4%
5.5%₹385.00₹345.00₹822.702
Nov ’23₹306.40
₹302.50
-1.3%
20.7%₹365.00₹240.00₹843.402

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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