ACE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ACE | Market Cap | 10,513 Cr. | Current Price | 881 ₹ | High / Low | 1,390 ₹ |
| Stock P/E | 24.7 | Book Value | 0.00 ₹ | Dividend Yield | 0.23 % | ROCE | 73.0 % |
| ROE | 53.3 % | Face Value | 2.00 ₹ | DMA 50 | 884 ₹ | DMA 200 | 962 ₹ |
| Chg in FII Hold | -0.82 % | Chg in DII Hold | 0.08 % | PAT Qtr | 109 Cr. | PAT Prev Qtr | 116 Cr. |
| RSI | 48.5 | MACD | 0.01 | Volume | 3,07,652 | Avg Vol 1Wk | 3,23,387 |
| Low price | 745 ₹ | High price | 1,390 ₹ | PEG Ratio | 0.64 | Debt to equity | 0.01 |
| 52w Index | 21.1 % | Qtr Profit Var | -8.08 % | EPS | 35.7 ₹ | Industry PE | 35.5 |
📊 Financials: Action Construction Equipment (ACE) demonstrates strong fundamentals with ROE at 53.3% and ROCE at 73.0%, reflecting excellent efficiency. Debt-to-equity is very low at 0.01, indicating a virtually debt-free balance sheet. Quarterly PAT stood at ₹109 Cr., slightly lower than ₹116 Cr. in the previous quarter, showing a -8.08% variance. EPS is ₹35.7, highlighting solid earnings power.
💰 Valuation: The stock trades at a P/E of 24.7 compared to the industry average of 35.5, suggesting undervaluation. P/B ratio cannot be calculated due to unavailable book value data. PEG ratio of 0.64 indicates attractive growth-adjusted valuation. Intrinsic value appears higher than current price, making entry appealing.
🏢 Business Model: ACE operates in construction equipment manufacturing, benefiting from infrastructure growth and industrial expansion in India. Its competitive advantage lies in strong domestic presence, diversified product portfolio, and efficient operations. Overall health is excellent, supported by high returns and minimal leverage.
📈 Entry Zone: Attractive entry zone is near ₹750–850, closer to its 52-week low. Current valuation is favorable compared to peers. Long-term holding is justified given strong fundamentals and industry demand.
Positive
- 📌 Exceptional ROE (53.3%) and ROCE (73.0%)
- 📌 Virtually debt-free (Debt-to-equity 0.01)
- 📌 EPS of ₹35.7 reflects strong earnings
- 📌 PEG ratio of 0.64 indicates attractive valuation
Limitation
- ⚠️ Quarterly PAT declined (-8.08% variance)
- ⚠️ Dividend yield of 0.23% is modest
- ⚠️ Book value data unavailable for P/B calculation
Company Negative News
- 📉 Decline in FII holdings (-0.82%)
- 📉 Marginal drop in quarterly PAT
Company Positive News
- 📈 Increase in DII holdings (+0.08%)
- 📈 Strong efficiency metrics (ROE & ROCE)
Industry
- 🏦 Industry PE at 35.5, higher than ACE’s valuation
- 📊 Construction equipment sector benefits from infrastructure expansion in India
Conclusion
🔎 ACE is fundamentally strong with excellent return ratios, negligible debt, and undervaluation compared to industry peers. Entry is advisable near ₹750–850. Long-term holding is favorable given strong fundamentals and industry demand, though investors should monitor profit growth consistency.
Would you like me to also prepare a side-by-side comparison of ACE vs construction equipment peers to highlight its undervaluation more clearly?