Agricultural, Commercial & Construction Vehicles
Action Construction Equipment Limited manufactures and sells material handling and construction equipment primarily in India. The company operates through Cranes, Construction Equipment, Material Handling, and Agri Equipment segments. It offers mobile cranes, truck mounted cranes, crawler cranes, rough terrain hydraulic mobile cranes, forklift trucks, mobile tower cranes, tower cranes, piling rigs, concrete placing booms, backhoes and wheeled loaders, road equipment, vibratory rollers, loaders, warehousing equipment, pick and carry cranes, and motor graders; and agriculture equipment, such as tractors, track harvesters, balers, rotavators, etc., as well as other construction equipment. The company rents tower cranes, motor graders, soil compacters, and tandem rollers. Action Construction Equipment Limited serves various infrastructure construction, power projects, ports and shipyards, dams, metro rail, roads, mining, steel industry, engineering industry, railways, cement, petroleum, defense, chemicals and fertilizer plants, warehousing, logistics, and building construction sectors. The company was incorporated in 1995 and is headquartered in Palwal, India.
Summary of Action Construction Equipments's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook:
Key Highlights:
Risks: Geopolitical tensions, global economic uncertainty, and delayed private capex recovery.
Last updated: Feb 25
Question 1: What is the current duty structure for cranes below 100 MT, and what are your expectations regarding changes?
Answer: The current customs duty on imported crawler cranes is 7.5%. An antidumping investigation against Chinese players is ongoing, with a decision expected by March/April 2025, potentially leading to antidumping duties to curb unfair pricing.
Question 2: How do geopolitical tensions and a potential trade war impact export targets?
Answer: Exports face temporary hurdles (freight costs, geopolitical risks), but medium-term guidance of 15"“20% contribution from exports and defense remains intact. CEV5-compliant products (post-January 2025) will enable entry into Europe and the Americas, improving FY26 prospects.
Question 3: What is the outlook for FY25 revenue, particularly in the Agri segment?
Answer: FY25 guidance is 15%+ overall growth: ~16%+ in cranes/construction equipment and flat Agri revenue (due to a high base effect from FY24 export orders).
Question 4: Is Q3 demand driven by pre-buying ahead of regulatory changes? How will reduced government capex affect future demand?
Answer: Q3 growth (18% YoY volume) reflects broad-based demand, not just pre-buying. Government capex remains strong (>3% GDP allocation), supporting infrastructure and manufacturing, with private capex revival expected to sustain growth.
Question 5: What drove gross margin expansion despite lower realizations?
Answer: Margin improvement stemmed from favorable product mix, cost efficiencies, operating leverage, and value engineering. Sequential EBITDA margin pressure was due to festive-season expenses.
Question 6: What is the update on the KATO JV and revenue timeline?
Answer: The JV (for heavy cranes) is delayed but progressing, likely finalizing by March 2025 or Q1 FY26. Production starts by Q3/Q4 FY26, with full-scale revenue from FY27.
Question 7: What is the margin guidance for Q4 FY25 and FY26?
Answer: EBITDA margins are expected to stabilize at current levels (~17.7%) with potential for slight expansion via pricing/operational leverage.
Question 8: Which export markets are prioritized, and how will CEV5 norms help?
Answer: Current exports focus on LatAm, Africa, CIS, and Southeast Asia. CEV5 compliance (from January 2025) opens opportunities in Europe and North America post-certification.
Question 9: What is the status of electric cranes and market potential?
Answer: Electric cranes are ready but await CMVR guidelines. Early sales (non-registered use cases) show promise. ACE is India's first electric construction equipment maker, targeting ESG-focused industries.
Question 10: What is the capex plan and capacity expansion target?
Answer: FY25 capex is ~INR90"“95 crore, raising capacity to INR5,000"“5,100 crore by Q4. Further expansion to ~INR5,700 crore is feasible with minimal investment.
Question 11: How will CEV5 norms impact realizations and margins?
Answer: CEV5 products may raise realizations by 8"“15% but prioritize margin stability. Export opportunities and premium features (safety, electronics) will aid long-term growth.
Question 12: What is the update on defense orders?
Answer: A significant defense order is delayed due to paperwork but expected in Q4 FY25, with execution over 24"“30 months and revenue starting in FY26.
Question 13: What is the replacement demand for pick-and-carry cranes?
Answer: Typical crane lifespan is 7"“8 years. Replacement demand accounts for ~15"“20% of volumes, driven by aging fleets and harsh operating conditions.
Question 14: Any update on acquisitions paused earlier?
Answer: Domestic acquisition plans are active, but no concrete developments to disclose yet. Updates will follow material progress.
Size: Market Cap wise it is among the top 20% companies of india.
Smart Money: Smart money has been increasing their position in the stock.
Balance Sheet: Strong Balance Sheet.
Profitability: Recent profitability of 12% is a good sign.
Growth: Awesome revenue growth! Revenue grew 20.5% over last year and 108% in last three years on TTM basis.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Momentum: Stock is suffering a negative price momentum. Stock is down -8.4% in last 30 days.
Technicals: SharesGuru indicator is Bearish.
Comprehensive comparison against sector averages
ACE metrics compared to Agricultural,
Category | ACE | Agricultural, |
---|---|---|
PE | 35.74 | 39.42 |
PS | 4.20 | 3.73 |
Growth | 20.5 % | 7.5 % |
ACE vs Agricultural, (2021 - 2025)
Understand Action Construction Equipments ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
VIJAY AGARWAL | 28.75% |
MONA AGARWAL | 24.65% |
SORAB AGARWAL | 6.15% |
SURBHI GARG | 5.82% |
MASSACHUSETTS INSTITUTE OF TECHNOLGY | 2.27% |
POLAR CAPITAL FUNDS PLC-EMERGING MARKET STAR FUND | 2.02% |
CHANDER BHATIA | 1.26% |
Firm | 0.13% |
ANURADHA GARG | 0.04% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Action Construction Equipments's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Crane, Material Handling and Construction Equipment | 91.2% | 797.7 Cr |
Agriculture Equipment | 8.8% | 77.4 Cr |
Total | 875.1 Cr |
Investor Care | |
---|---|
Dividend Yield | 0.18% |
Dividend/Share (TTM) | 2 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 32.68 |
Financial Health | |
---|---|
Current Ratio | 1.33 |
Debt/Equity | 0.08 |
Debt/Cashflow | 111.71 |
Detailed comparison of Action Construction Equipments against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
LT | Larsen & ToubroCivil Construction | 4.57 LCr | 2.52 LCr | -2.82% | -7.63% | 27.66 | 1.81 | +16.75% | +10.26% |
ESCORTS | Escorts KubotaTractors | 35.91 kCr | 10.28 kCr | -0.54% | -7.77% | 30.18 | 3.49 | +10.05% | +17.38% |
BEML | BEMLConstruction Vehicles | 13.33 kCr | 3.91 kCr | +2.47% | -7.98% | 50.94 | 3.41 | -2.07% | +43.30% |
GREAVESCOT | Greaves CottonCompressors, Pumps & Diesel Engines | 4.51 kCr | 2.82 kCr | -9.51% | +33.39% | -212.94 | 1.6 | -1.36% | +93.52% |
TIL | TILConstruction Vehicles | 1.38 kCr | 264.8 Cr | -18.05% | -5.53% | 8.54 | 5.21 | +419.32% | +167.34% |
Valuation | |
---|---|
Market Cap | 13.93 kCr |
Price/Earnings (Trailing) | 35.79 |
Price/Sales (Trailing) | 4.2 |
EV/EBITDA | 23.82 |
Price/Free Cashflow | 56.61 |
MarketCap/EBT | 26.71 |
Fundamentals | |
---|---|
Revenue (TTM) | 3.31 kCr |
Rev. Growth (Yr) | 16.65% |
Rev. Growth (Qtr) | 14.46% |
Earnings (TTM) | 389.13 Cr |
Earnings Growth (Yr) | 26.56% |
Earnings Growth (Qtr) | 17.78% |
Profitability | |
---|---|
Operating Margin | 15.73% |
EBT Margin | 15.73% |
Return on Equity | 28.09% |
Return on Assets | 16.77% |
Free Cashflow Yield | 1.77% |