This market leader stock, which is recognised as the world’s largest manufacturer of pick and carry cranes and commands over 63 percent market share in the mobile crane segment within India, jumped 2 percent after receiving an order worth Rs. 420 crores from the Ministry of Defence.
Stock Price Movement:
With a market capitalization of Rs. 14,373.34 crores, the share of Action Construction Equipment Limited has reached an intraday high of Rs. 1,264.85 per equity share, rising nearly around 1.61 percent from its previous day’s close price of Rs. 1,244.85. Since then, the stock has retreated and is currently trading at Rs. 1,215.10 per equity share.
What Happened:
Action Construction Equipment Limited (ACE) has secured its largest-ever order worth Rs. 420 crore from the Ministry of Defence (MoD), for the supply of 1,121 Rough Terrain Forklift Trucks (RTFLTs) along with attachments and accompanying accessories.
This order is part of a larger Ministry of Defence procurement of 1,868 RTFLTs, with ACE receiving a dominant 60 percent of the order. These forklifts will enhance logistics and combat readiness for the Indian Army, Air Force, and Navy by improving material handling efficiency.
Market share:
The company is the world’s largest Pick and Carry crane manufacturer, holding over 63 percent market share in the country’s mobile crane segment and more than 60 percent in the domestic tower crane market.
Management Guidance:
Action Construction Equipment aims to maintain a strong growth rate of over 15 percent in the current year while keeping EBITDA margins stable. The company’s capital expenditure plans are on track, with total capacity expected to reach Rs. 5,000 crore by the end of Q4 FY25.
Segment Performance:
Action Construction Equipment Limited’s cranes, material handling, and construction equipment segment saw a 15.19 percent YoY revenue increase to Rs. 795.73 crores, with margins expanding by 375 basis points to Rs. 154.38 crores.
Further, the Agricultural Equipment segment also performed well, growing 24 percent to Rs. 77 crores while maintaining stable margins at 4.73 percent. These results reflect the company’s strong market position and operational efficiency.
Future Outlook:
The company expects strong demand, driven by government infrastructure projects and private sector investments. The company anticipates stable EBITDA margins in Q4 and FY26, with a slight improvement due to better efficiency.
Action Construction Equipment is also actively pursuing defence contracts and expects major orders soon. Additionally, the company is in talks for land acquisition and expansion to increase future production capacity.
Recent quarter results:
Action Construction Equipment Limited’s revenue has increased from Rs. 753 crore in Q3 FY24 to Rs. 875 crore in Q3 FY25, which has grown by 16.20 percent. The net profit has also grown by 27.27 percent from Rs. 88 crore in Q3 FY24 to Rs. 112 crore in Q3 FY25.
Written By – Nikhil Naik
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