Market leader stock which is the world’s largest Pick & Carry crane manufacturer with over 63 percent market share engaged in the business of manufacturing and marketing hydraulic mobile cranes, mobile tower cranes, material handling equipment, and many more jumped 3 percent in the day’s trade upon receiving a new work order from the Ministry of Defence (MoD).
Price Action
With a market capitalization of Rs. 15,210 Crores, the shares of Action Construction Equipment Limited were trading at Rs. 1,277 per equity share, up 1 percent from its previous day’s close price of Rs. 1,264.15.
What Happened
Action Construction Equipment Limited has received a new work order from the Ministry of Defence (MoD) for the supply of 285 Special Forklifts and 6 Rough Terrain Cranes with a 30-tonne Lifting capacity. This work order demonstrates the company’s efforts under the “Make in India” and “AatmaNirbhar Bharat” initiatives of the Government of India.
About the Company
Action Construction Limited is engaged in the business of manufacturing and marketing hydraulic mobile cranes, mobile tower cranes, material handling equipment like forklifts, road construction equipment like backhoe loaders, compactors, motor graders, and agriculture equipment like tractors, harvesters, rotavators, and many more.
It is the world’s largest Pick & Carry crane manufacturer with over 63 percent market share in the Mobile crane segment in the country and a majority market share of more than 60 percent in the Tower Cranes segment domestically.
It has a significant presence across diversified sectors like Construction, Infrastructure, Manufacturing, Logistics, and Agriculture with operations in over 37 Countries and a 20,000+ strong Customer base along with Faster Service and Product Support through a wide Network across 100+ Locations in India.
Financials and Ratios
Its Revenue from operations grew by 13 percent from Rs. 652 Crores in Q1FY24 to Rs. 734 Crores in Q1FY25, accompanied by profits of Rs. 68 Crores to Rs. 84 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 30.6 percent, and a return on capital employed (ROCE) of 42.3 percent. It is a debt-free company with a debt-to-equity ratio of 0.26.
Written by: Bharath K.S
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