ACE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ACE | Market Cap | 10,570 Cr. | Current Price | 888 ₹ | High / Low | 1,390 ₹ |
| Stock P/E | 24.3 | Book Value | 149 ₹ | Dividend Yield | 0.23 % | ROCE | 40.1 % |
| ROE | 28.5 % | Face Value | 2.00 ₹ | DMA 50 | 879 ₹ | DMA 200 | 973 ₹ |
| Chg in FII Hold | -0.82 % | Chg in DII Hold | 0.08 % | PAT Qtr | 116 Cr. | PAT Prev Qtr | 104 Cr. |
| RSI | 51.2 | MACD | 15.1 | Volume | 2,52,980 | Avg Vol 1Wk | 1,98,340 |
| Low price | 745 ₹ | High price | 1,390 ₹ | PEG Ratio | 0.43 | Debt to equity | 0.08 |
| 52w Index | 22.1 % | Qtr Profit Var | 8.15 % | EPS | 36.5 ₹ | Industry PE | 34.6 |
📈 Positive
- Market capitalization of ₹10,570 Cr. provides scale in construction equipment sector.
- Strong ROCE (40.1%) and ROE (28.5%) highlight excellent efficiency and profitability.
- EPS of ₹36.5 supports earnings visibility.
- PEG ratio of 0.43 indicates growth is attractively priced.
- Debt-to-equity ratio of 0.08 reflects financial stability.
- PAT growth (+8.15%) shows steady earnings momentum.
- Trading near DMA 50 (₹879), providing technical support.
⚠️ Limitation
- Dividend yield of 0.23% is modest, limiting income support.
- Current price (₹888) below DMA 200 (₹973), showing medium-term resistance.
- RSI at 51.2 indicates neutral momentum.
- FII holdings declined (-0.82%), showing reduced foreign investor confidence.
🚨 Company Negative News
- Slight reduction in foreign institutional support.
- Price still below long-term DMA 200, indicating resistance.
🌟 Company Positive News
- PAT improved (₹116 Cr. vs ₹104 Cr.), showing resilience.
- DII holdings increased (+0.08%), reflecting domestic institutional confidence.
- MACD positive (15.1), suggesting bullish momentum.
🏭 Industry
- Industry P/E of 34.6 highlights ACE’s relative undervaluation at 24.3.
- Sector growth supported by infrastructure and industrial demand.
- Industry outlook remains steady, favoring long-term players.
📝 Conclusion
ACE is fundamentally strong with excellent efficiency and undervaluation relative to peers. Earnings growth is steady, supported by strong ROE/ROCE and low debt.
🔑 **Entry Zone:** ₹800–₹860, closer to DMA 50 and support levels (₹745).
📌 **Long-term Holding Guidance:** Suitable for long-term (3–5 years) given strong fundamentals. Existing holders may consider partial profit booking near ₹1,250–₹1,300 if valuations stretch further. Maintain strict stop-loss around ₹870 for risk management.
This positions ACE as a fundamentally strong candidate for long-term investment, with excellent efficiency and undervaluation relative to peers. Would you like me to extend this into a sector overlay benchmarking (ACE vs peers like BEML and L&T) to highlight relative valuation and efficiency?