⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ACE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ACE | Market Cap | 10,317 Cr. | Current Price | 868 ₹ | High / Low | 1,390 ₹ |
| Stock P/E | 24.2 | Book Value | 149 ₹ | Dividend Yield | 0.23 % | ROCE | 40.1 % |
| ROE | 28.5 % | Face Value | 2.00 ₹ | DMA 50 | 914 ₹ | DMA 200 | 1,051 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | -0.07 % | PAT Qtr | 104 Cr. | PAT Prev Qtr | 96.8 Cr. |
| RSI | 47.4 | MACD | -20.0 | Volume | 4,12,901 | Avg Vol 1Wk | 3,80,440 |
| Low price | 775 ₹ | High price | 1,390 ₹ | PEG Ratio | 0.43 | Debt to equity | 0.08 |
| 52w Index | 15.1 % | Qtr Profit Var | 10.1 % | EPS | 35.8 ₹ | Industry PE | 33.1 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 96.8 Cr. to 104 Cr. (+10.1% variance), showing steady growth momentum.
- Margins: ROE at 28.5% and ROCE at 40.1% are excellent, reflecting strong efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.08 indicates negligible leverage, a very strong balance sheet.
- Cash Flow: Strong profitability supports sustainable cash generation.
💹 Valuation Indicators
- P/E Ratio: 24.2 vs. industry average of 33.1 — relatively undervalued compared to peers.
- P/B Ratio: Current price (₹868) vs. book value (₹149) → ~5.8x, premium valuation.
- PEG Ratio: 0.43, suggesting growth is attractively priced.
- Intrinsic Value: Valuation looks reasonable given strong returns and low debt.
🏢 Business Model & Competitive Advantage
- Action Construction Equipment (ACE) operates in construction and material handling equipment, serving infrastructure and industrial sectors.
- Competitive advantage lies in diversified product offerings, strong domestic presence, and leadership in cranes and construction machinery.
📈 Technicals & Entry Zone
- DMA 50 (₹914) and DMA 200 (₹1,051) are above current price, showing weakness.
- RSI at 47.4 indicates neutral momentum; MACD negative suggests mild bearishness.
- Entry Zone: Attractive near ₹820–860 for long-term investors.
- Long-Term Holding: Strong fundamentals justify holding; suitable for compounding wealth in infrastructure growth cycle.
✅ Positive
- Excellent ROE (28.5%) and ROCE (40.1%).
- Low debt-to-equity ratio (0.08).
- P/E ratio (24.2) is below industry average (33.1), indicating relative undervaluation.
⚠️ Limitation
- P/B ratio (~5.8x) indicates premium valuation.
- Dividend yield of 0.23% is modest despite profitability.
- Stock trading below DMA 50 and DMA 200, showing technical weakness.
📉 Company Negative News
- DII holdings decreased (–0.07%), showing reduced domestic institutional confidence.
- MACD negative (–20.0), indicating short-term bearish momentum.
📈 Company Positive News
- Quarterly PAT improved to 104 Cr., reflecting operational strength.
- FII holdings increased (+0.04%), showing foreign investor support.
🏭 Industry
- Construction equipment sector benefits from infrastructure spending and industrial growth in India.
- Industry average P/E (33.1) highlights ACE’s relatively attractive valuation.
🔎 Conclusion
- ACE is financially strong with excellent return ratios and low debt.
- Valuations are reasonable compared to industry averages, though technical weakness persists.
- Recommendation: Accumulate near ₹820–860 for long-term holding. Suitable for investors seeking exposure to infrastructure growth with strong fundamentals.