Action Construction Equipment Ltd. share price target

Action Construction Equipment (ACE) with its established brand name ACE has expertise in manufacturing diverse product profile like cranes, loaders, forklifts, tractors and other construction equipment across India's agriculture, infrastructure and construction space. Buoyed by tailwinds in its operating segments, the company posted stellar numbers for the quarter. The 9MFY18 revenues grew at a robust pace of 32% YoY at ~| 737 crore while PAT grew 152% YoY at | 31.18 crore....

Action Construction Equipment (ACE) has reported its Q2FY18 results. The company managed a robust topline growth of 40% YoY. Positive operating leverage at play resulted in a higher than anticipated growth of bottomline at 144%. Segmental profits were led by the cranes segment and boosted by a turnaround in the agri equipment segment. Focussed on catering to anticipated demand Considering the recent robust operational performance delivered by the company, we revise our estimates higher for ACE across all segments....

571 units in FY16 to 846 units in FY17. This helped the company to augment its MHCE revenues by a significant 62.1% from 626 mn in FY16 to 1,015 mn in FY17, thereby posting an operational profit of 63 mn in FY17 vis-a-vis a loss of 7 mn in FY16....

Key argument: Excellent execution track record, Large equipment bank & minimal sub-contracting

enabled ACE to clock ~ 57.2 % growth in its EBITDA from 125 mn in H1FY16 to 197 mn in H1FY17. In spite of a slight rise in depreciation, mainly attributable to the ACE merger with ACE TC Rental Pvt Ltd and a fall in other income, the company has benefited from a low base as the...

Action Construction Equipment (ACE) is one of the leading material handling & construction equipment manufacturing companies in India. Its money spinner is its crane division which boasts a market share of ~ 60% in both mobile cranes & tower cranes segments. It also possesses manufacturing capabilities to make crawler cranes, truck mounted cranes, lorry loaders, backhoe loaders, vibratory rollers, forklifts & other construction equipment. It is an emerging agriculture equipment manufacturer as well where it produces & sells tractors, harvest combines, rice planters, balers & rotavators. Its production facilities are located in the industrial township of Faridabad. LKP Securities initiate coverage on ACE with a BUY rating and a 18 month price objective of ? 75.

Trendlyne has 1 report on ACE updated in the last year from 1 broker with an average target of Rs 75.