The IIFL Securities Report: Buy Action Const Equip - December 20
On December 20, IIFL Securities issued a buy recommendation for Action Construction Equipment at the current market price of Rs 1526.35. The brokerage firm set a target price of Rs 1560 for the stock, indicating a potential upside of approximately 2.2%. This recommendation is likely based on the company's strong fundamentals, including its leadership position in the construction equipment industry, healthy financial performance, and robust order book.
About Action Const Equip:
Action Construction Equipment Limited (ACEL) is a leading manufacturer of crawler cranes in India. Incorporated in 1983 and based in Faridabad, Haryana, the company offers a range of crawler cranes with capacities from 30 to 220 tons, including both conventional and hydraulic variants. ACEL's cranes are used in various industries such as construction, infrastructure, energy, and mining. The company has a strong market presence in India and exports to over 30 countries worldwide. ACEL is known for its product quality, innovation, and customer-centric approach.
52 Week Price Trend:
Action Const Equip (NSE:ACE), currently trading at Rs 1526.35, has a substantial gap between its 52-week high of Rs 1695 and its low of Rs 780. This indicates significant volatility in the stock's price over the past year. The wide range suggests that the stock has the potential for both substantial gains and losses, making it a high-risk investment. Investors considering ACE should carefully evaluate their risk tolerance and investment goals before making any decisions.
Stratzy's MOST Analysis:
ACE has received an AAA rating from Stratzy's MOST framework, indicating that it has low fundamental risks. The MOST framework evaluates companies based on four pillars: Management, Outlook, Safety, and Trend. ACE has demonstrated strong management, a positive outlook, a high level of safety, and a positive trend, leading to its exceptional AAA rating. This rating suggests that ACE is a financially stable company with a strong track record and a promising future, making it a low-risk investment for investors.
Company's Fundamentals:
Action Const Equip (NSE: ACE) has a current stock price-to-earnings (PE) ratio of 48.94, indicating that investors are willing to pay 48.94 times the company's annual earnings per share for its stock. The price-to-book (PB) ratio of 12.93 suggests that the market value of ACE's assets is 12.93 times their book value. Lastly, the dividend yield of 0.13% implies that investors can expect to receive an annual dividend of 0.13% of the current share price. These metrics provide insights into ACE's valuation and income potential, helping investors make informed investment decisions.
Fundamental and Technical information provided in this blog were last updated on 20 Dec, 2024
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