Share price of India’s leading material handling and construction equipment manufacturer moved up by 2.35 percent on BSE to hit an intraday high at Rs. 1,535.55 in the morning trading session of Friday, as against its previous closing price of Rs. 1,500.25.
Action Construction Equipment Limited (ACE), which has a market capitalisation of Rs. 17,767.21 crore, has delivered 83.5 percent of positive returns over the last six months and 228.2 percent of multibagger returns in one year.
The company is the world’s largest Pick & Carry cranes manufacturer with over 63 percent market share in the Mobile cranes segment in India and a majority market share of over 60 percent in Tower Cranes segment domestically.
The company is anticipating that the benefits of the recent price hikes will be reflected in the April-June quarter.
ACE’s Executive Director, Sorab Agarwal, is optimistic that the year will end with more than a 15-20 percent revenue increase, even though the company is anticipating muted growth as a result of the general election and the upcoming monsoon season in the first few months of FY25.
The company reported an increase in consolidated revenue from operations by 36.2 percent YoY from Rs. 613.84 crore in Q4 FY22-23 to Rs. 835.84 crore Q4 FY23-24, accompanied by an increase in net profit by 109 percent from Rs. 47.15 crore to Rs. 98.5 crore, during the same period.
The net profit of the company has grown at a CAGR of 42.41 percent in the last five years from Rs. 56.02 crore in FY18-19 to Rs. 328 crore in FY23-24.
ACE has a strong goal to enhance its export portfolio, which drives the company to concentrate on inorganic growth domestically and abroad.
The share of exports to the business’s topline has grown to 8.5 percent from just 1-2 percent during the last three to four years, and to increase it to 15-20 percent is its medium- to long-term objective.
As part of this approach, ACE is exploring acquisition opportunities outside the country and intends to make a decision this year, perhaps in Q2FY25 or Q3FY25.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 76.4 crore in Q4 FY22-23 to Rs. 150.6 crore in Q4 FY23-24, indicating a growth of 97.1 percent.
The company is also making significant steps to expand business in the Defence Sector, as it announced in January 2023 that the Ministry of Defence’s (MoD) DRDO has placed an order with ACE for the provision of cranes.
ACE has developed an indigenous Special Mobile Crane for the Ministry of Defence (MoD), DRDO, programme MRSAM (Army). The said Cranes, with the appropriate tonnage, are the first of their kind made by an Indian company using advanced technology.
ACE Limited provides products in four main segments: Cranes, Construction Equipment, Material Handling Equipment and Agriculture Equipment.
Written by Shivani Singh
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