The IIFL Securities Report: Buy Action Const Equip - September 16

IIFL Securities recommends buying Action Construction Equipment (ACE) with a target price of Rs 1438, implying a significant upside potential of around 11% from its current market price of Rs 1290.65 on September 16. The brokerage firm believes that the company's strong order book, healthy balance sheet, and focus on execution should drive its financial performance in the coming quarters. Moreover, ACE is expected to benefit from increased infrastructure spending and the government's focus on road construction.

About Action Const Equip:

Action Construction Equipment Limited (ACEL), listed on the National Stock Exchange (NSE), is a leading manufacturer and supplier of construction equipment in India. Founded in 1995, the company offers a wide range of products including crawler cranes, tower cranes, and concrete pumps. With state-of-the-art manufacturing facilities spread across 26 acres in Sahibabad, Uttar Pradesh, ACEL focuses on providing high-quality, innovative equipment to meet the evolving needs of the construction industry. The company's commitment to customer satisfaction and technological advancements has earned it a strong reputation in the market.

52 Week Price Trend:

Action Construction Equipment (ACE), a leading manufacturer of crawler cranes and mobile tower cranes, has witnessed a remarkable rise in its stock price over the past year. Despite facing the headwinds of the COVID-19 pandemic, ACE's CMP of Rs 1290.65 indicates a significant surge compared to its 52-week low of Rs 337.45. Notably, the stock has also surpassed its 52-week high of Rs 1210.9. This robust performance reflects the company's resilience and the growing demand for construction equipment in India's expanding infrastructure sector.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, ACE has received an AAA rating. This indicates that its management is strong, its outlook is positive, its safety is high, and its trend is bullish. These factors collectively suggest that ACE has a low fundamental risk profile. The AAA rating is the highest rating that can be assigned to a stock by Stratzy, indicating that ACE is a solid investment choice.

Company's Fundamentals:

Action Const Equip (NSE: ACE) is a company that is listed on the National Stock Exchange of India (NSE). The company's stock has a price-to-earnings (PE) ratio of 49.83, a price-to-book (PB) ratio of 13.21, and a dividend yield of 0.09%. The PE ratio measures the relationship between the price of a stock and its earnings per share. The PB ratio measures the relationship between the price of a stock and its book value per share. The dividend yield measures the percentage of a stock's price that is paid out as dividends.

Fundamental and Technical information provided in this blog were last updated on 14 Sep, 2024

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