⚠ 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 | 9,995 Cr. | Current Price | 840 ₹ | High / Low | 1,390 ₹ |
| Stock P/E | 23.0 | Book Value | 149 ₹ | Dividend Yield | 0.24 % | ROCE | 40.1 % |
| ROE | 28.5 % | Face Value | 2.00 ₹ | DMA 50 | 883 ₹ | DMA 200 | 1,006 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | -0.07 % | PAT Qtr | 116 Cr. | PAT Prev Qtr | 104 Cr. |
| RSI | 44.9 | MACD | -13.8 | Volume | 2,11,561 | Avg Vol 1Wk | 3,07,509 |
| Low price | 775 ₹ | High price | 1,390 ₹ | PEG Ratio | 0.41 | Debt to equity | 0.08 |
| 52w Index | 10.6 % | Qtr Profit Var | 8.15 % | EPS | 36.5 ₹ | Industry PE | 30.1 |
📊 Core Financials
- Profitability: PAT rose from ₹104 Cr. to ₹116 Cr. (Qtr Profit Var: +8.15%)
- Margins: ROE at 28.5% and ROCE at 40.1% indicate excellent efficiency
- Debt: Very low debt-to-equity ratio (0.08) shows strong financial discipline
- Cash Flow: EPS at ₹36.5 supports consistent earnings
💰 Valuation Indicators
- P/E Ratio: 23.0 vs Industry PE of 30.1 → undervalued
- P/B Ratio: Current Price ₹840 vs Book Value ₹149 → ~5.6x book
- PEG Ratio: 0.41 → growth priced attractively
- Intrinsic Value: Appears undervalued relative to industry peers
🏢 Business Model & Health
- Market Cap: ₹9,995 Cr. reflects strong presence in construction equipment
- Dividend Yield: 0.24% provides modest shareholder return
- Competitive Advantage: Leading brand in cranes and construction machinery
- Overall Health: Strong efficiency, low debt, and fair valuation
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹800–850 for accumulation
- Long-Term Holding: Suitable for long-term investors given strong fundamentals and sector demand
✅ Positive
- High ROCE (40.1%) and ROE (28.5%)
- Low debt-to-equity ratio (0.08)
- P/E ratio (23.0) below industry average
⚠️ Limitation
- P/B ratio ~5.6x indicates premium valuation
- Dividend yield (0.24%) is modest
- Stock trading below DMA levels (50DMA ₹883, 200DMA ₹1,006)
📉 Company Negative News
- DII holding decreased (-0.07%)
- Stock price corrected significantly from 52-week high of ₹1,390
📈 Company Positive News
- Quarterly PAT improved to ₹116 Cr.
- FII holding increased (+0.04%)
🏭 Industry
- Industry PE: 30.1, higher than ACE’s PE
- Construction equipment sector benefits from infrastructure growth
🔎 Conclusion
ACE demonstrates strong efficiency and profitability with minimal debt, making it a fundamentally sound company.
The stock trades at a discount compared to industry peers, offering an attractive entry opportunity near ₹800–850.
It is suitable for long-term holding, supported by infrastructure demand and strong operational performance.