This market-leading stock, recognized as the world’s largest manufacturer of pick-and-carry cranes and holding a dominant 63 percent market share in India’s mobile crane segment, is in focus after the stock traded at a discount of 28 percent from its 52-week high.
With a market capitalization of Rs. 13,813.65 crore, the shares of Action Construction Equipment Limited closed at Rs. 1,160 per equity share, down nearly 0.84 percent from its previous day’s close price of Rs. 1,169.80.
The stock is currently trading at a discount of 27.5 percent from its 52-week high of Rs. 1,599.55. Over the past five years, the stock has provided impressive returns of more than 1,777.02 percent.
Action Construction Equipment Limited (ACE) was incorporated in 1995 and is a leading Indian company specializing in the manufacturing of material handling and construction equipment. The company operates primarily out of Faridabad, Haryana, where it has eight manufacturing facilities and a dedicated R&D unit.
The company boasts an installed capacity of 13,200 cranes, 2,700 material handling units, and 1,800 construction equipment units. Operating at a robust blended utilization of approximately 70 percent, the company demonstrates strong manufacturing efficiency and scalability. This capacity supports its leadership in the Indian construction equipment market, positioning it well for future growth and increased demand.
For FY26, Action Construction Equipment Limited has guided for a topline growth of 14–15 percent, with stable margins in the range of 17–18 percent, revising its earlier growth projection of over 20 percent. The company had initially aimed to double its FY23 topline (Rs. 4,400 crore) by FY26, but now expects to reach this target by FY27.
The company is the world’s largest manufacturer of Pick & Carry cranes, holding over 63 percent market share in India’s mobile crane segment and more than 60 percent in the domestic tower crane market.
In FY26, Action Construction Equipment Limited expects exports and defence to contribute 9–10 percent of total revenue, with defence accounting for 4 percent and exports 5–6 percent. The medium-term goal is to increase this to 10–15 percent. The company is executing a Rs. 420 crore defence order over three years, with Rs. 80–90 crore planned for FY26 and the remainder in FY27–28.
Action Construction Equipment Limited derives its revenue from a well-diversified mix of sectors. Manufacturing and logistics contribute around 45 percent, followed by construction and infrastructure at approximately 35 percent. The real estate segment accounts for 12–13 percent, while agriculture contributes 7–8 percent. This balanced portfolio supports stable growth and reduces dependency on any single industry segment.
For FY26, Action Construction Equipment Limited has outlined a capex plan of Rs. 300–350 crore. This includes Rs. 100 crore for modernization and upgradation, Rs. 100 crore for a new plant/expansion (part of a Rs. 250 crore project, with the remaining investment in FY27), and Rs. 150 crore allocated for land acquisition to support future expansion amid rising land prices.
Coming into financial highlights, Action Construction Equipment Limited’s revenue has increased from Rs. 836 crore in Q4 FY24 to Rs. 961 crore in Q4 FY25, which has grown by 14.95 percent. The net profit has also grown by 21.43 percent from Rs. 98 crore in Q4 FY24 to Rs. 119 crore in Q4 FY25. Action Construction Equipment Limited’s revenue and net profit have grown at a CAGR of 23.54 percent and 51.06 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 40.3 percent and 28.8 percent, respectively. Action Construction Equipment Limited has an earnings per share (EPS) of Rs. 34.4, and its debt-to-equity ratio is 0.01x.
Written By – Nikhil Naik
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