ACE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Let’s power up the analysis on Action Construction Equipment Ltd. (ACE) — a standout in the construction equipment space with stellar fundamentals and intriguing technical patterns.

🧮 Core Financial Highlights

Returns Metrics

ROCE: 40.3% and ROE: 28.8% — these are exceptional, reflecting highly efficient capital deployment.

EPS: ₹34.4 — solid earnings signal, especially for its market segment.

Qtr Profit Var: +20.4% and increasing PAT (₹119 Cr vs ₹112 Cr) suggest operational momentum.

Debt Profile

Debt-to-equity: 0.01 — virtually debt-free, a major plus for resilience and cost control.

Dividend Yield: 0.18% — low, but reflects growth-oriented reinvestment.

💰 Valuation Snapshot

Metric Value Insight

P/E Ratio 32.5 Fairly valued, lower than Industry PE of 44.5

P/B Ratio ~8.23 High — signals premium on asset base due to profitability

PEG Ratio 0.57 Low PEG = undervalued growth, great combination

Intrinsic Value ✅ Close to CMP or Higher Fundamentals justify the current pricing

🏗️ Business Model & Edge

ACE is a leader in construction and material handling equipment with diversified segments — cranes, loaders, tractors.

Strong domestic infrastructure push and private capex revival play in its favor.

Negligible debt and strong profitability offer a moat against cyclical downturns.

FII outflow (-0.13%) mildly cautionary, but DII inflow (+0.08%) suggests domestic conviction.

📉 Technical Signals

RSI: 36.2 — nearing oversold levels, correction might be nearing exhaustion.

MACD: -26.1 — bearish divergence, but weakening selling momentum.

Trading below DMA 50 (₹1,185) and DMA 200 (₹1,232) — short-term weakness.

52W range: ₹917–₹1,600 — current price in bottom third, potential rebound zone.

🎯 Suggested Entry Zone & Long-Term Strategy

Entry Zone: ₹980–₹1,070 — ideal accumulation range before technical recovery and continued infra tailwinds.

Long-term holders can benefit from

India's infra and construction boom

Product diversification & export potential

Lean balance sheet and margin stability

Let’s map out a full infra-heavy basket with ACE alongside players like Schwing Stetter or JCB India alternatives. Want to explore high-growth engineering stocks next? I’ve got a list that could make your watchlist feel turbocharged 🔧📈.

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