Action Construction Equipment Limited (ACE)
Large CapIndustrials stocks · Large cap · NSE
Action Construction Equipment (ACE) is India's diversified CE manufacturer, a global leader in Pick & Carry cranes (63% market share) and domestic leader in Tower Cranes (60%). It serves infra, construction, logistics, manufacturing, defense, and agri sectors, with a wide product portfolio and presence in over 37 countries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/2 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 75/100Rev +21% YoY · PAT +21% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹786 Cr | +20.6% | -23.6% |
| EBITDA | ₹118 Cr | +26.9% | -31.4% |
| Operating margin | 15.0% | +100 bps | -200 bps |
| PAT | ₹119 Cr | +21.4% | +7.2% |
| PAT margin | 15.1% | +11 bps | +435 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
ACE reported strong Q1-FY27 results with Total Income up 19.5% YoY to INR 8,403 Mn, EBITDA up 19.9% YoY to INR 1,725 Mn, and PAT up 22.3% YoY to INR 1,195 Mn. Margins expanded significantly QoQ, with EBITDA margin at 20.53% and PAT margin at 14.22%.
ACE delivered robust Q1-FY27 performance, achieving best-ever Q1 revenues and margins, driven by strong CE segment growth and cost management. While macroeconomic tailwinds are cited, geopolitical tensions and commodity price inflation pose potential risks to sustained margin expansion. The KATO JV is a key development to watch.
Revenue by End-user Sector
Latest issuer-disclosed distribution across 4 reported categories.
Indian Manufacturing & Infrastructure Sector
Company is 'Poised to capture Significant Growth Prospects in Indian Manufacturing & Infrastructure Sector'.
New Product Launches
Focused on new-age technology, new products feature intelligent equipment with AI-assisted tools to enhance performance, reliability and safety.
ACE-KATO Joint Venture
Dedicated heavy cranes platform combining ACE’s manufacturing/distribution strength with KATO’s global network and heavy crane technology leadership.
Government Capital Expenditure
GoI has budgeted total capital expenditure of ~INR 12.2 trillion for FY27 (BE) versus ~INR 11.0 trillion in FY26 (RE), implying ~11% YoY growth.
ACE-KATO Joint Venture Commencement
Commencement of ACE - KATO Joint Venture, creating a focused growth vehicle in the heavy cranes segment for domestic and international markets.
Government Capital Expenditure
GoI has budgeted total capital expenditure of ~INR 12.2 trillion for FY27 (BE) versus ~INR 11.0 trillion in FY26 (RE), implying ~11% YoY growth.
PLI Schemes
Implemented PLI in 14 sectors with an outlay of INR 1.97 lakh crore to enhance domestic manufacturing & import substitution.
Infrastructure Creation
Continued Government emphasis on infrastructure creation, higher investments in roads, railways, urban infrastructure, manufacturing and logistics.
Scheme for Enhancement of Construction and Infrastructure Equipment (CIE)
New scheme introduced by Hon’ble FM will help the industry move closer towards self-reliance.
Geopolitical Tensions
Escalation of geopolitical tensions in West Asia has created a challenging operating environment.
Elevated Commodity Prices
Elevated crude oil and Commodity prices have created a challenging operating environment.
Supply Chain Disruptions
Supply chain disruptions have created a challenging operating environment.
Sharp Inflation
Sharp inflation has created a challenging operating environment.
Geopolitical Tensions
Escalation of geopolitical tensions in West Asia could impact the operating environment.
Commodity Price Volatility
Elevated crude oil and commodity prices could pressure margins.
Supply Chain Disruptions
Ongoing supply chain disruptions could affect production and delivery timelines.
Inflationary Pressures
Sharp inflation could increase operational costs and impact demand.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company explicitly provides both YoY and QoQ comparisons for financial metrics and highlights sequential margin expansion. YoY is crucial for seasonal businesses like construction equipment, while QoQ indicates recent operational momentum and cost management effectiveness.
Total Income
Q1-FY27: INR 8,403 Mn (19.5% YoY, -17.9% QoQ)
EBITDA
Q1-FY27: INR 1,725 Mn (19.9% YoY, 3.7% QoQ)
EBITDA Margin
Q1-FY27: 20.53% (7 Bps YoY, 428 BPS QoQ)
PAT
Q1-FY27: INR 1,195 Mn (22.3% YoY, 7.8% QoQ)
Best Ever Q1 Performance
The company achieved its best ever Q1 Revenues and Margins.
Robust CE Segment Growth
Robust growth in CE segment which grew by 21.96% YOY with margins at 18.16%.
Margin Expansion Drivers
Margins expanded sequentially, driven by prudent cost management and calibrated pricing action.
Intact Structural Growth Drivers
The structural growth drivers for the Indian Construction Equipment industry remain firmly intact.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 20.53% (Q1-FY27) | Sustained sequential expansion or impact from commodity prices and inflation. |
| CE Segment Growth | 21.96% YoY (Q1-FY27) | Continued robust growth, especially given QoQ volume decline in Q1-FY27. |
| Agricultural Equipment Volume | 440 units (Q1-FY27) | Recovery from the YoY and QoQ decline observed in Q1-FY27. |
| ACE-KATO JV Performance | Commencement of JV | Specific updates on market penetration, technology transfer, and financial contribution from the joint venture. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Expect 14-15% revenue growth for FY26.
"14-15% revenue growth expected for FY 26"
Expect 14-15% revenue growth for FY26.
"14-15% revenue growth expected for FY 26"
Outcome check: Revenue YoY averaged 5.9% across 4 later quarter(s).
Anticipate a subdued start to current FY (FY26) due to ongoing geopolitical issues, tariff conflicts, CEV-5 (BS-5) emission norms with cost implications, and seasonal monsoon impact.
"anticipate a subdued start to current FY"
Anticipate a subdued start to current FY (FY26) due to ongoing geopolitical issues, tariff conflicts, CEV-5 (BS-5) emission norms with cost implications, and seasonal monsoon impact.
"anticipate a subdued start to current FY"
Outcome check: PAT YoY averaged 3.3% across 4 later quarter(s).
Trend score and candlestick chart
59NeutralSMA20 +8.3% / mo · MACD − · near 52W high
Technical chart
ACEdaily · 1Y · AUTO+28.9%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 53. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~7.7% over last month) — short-term momentum positive.
- RSI(14) at 53 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 6% off 52W high · 51% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 18.9% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +4.1%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 62 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 62 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 22.5%.
- Growth contributes 22/25 to the score.
Main drags
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
- Quality is weaker at 14/20; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 50% delivered/partly-delivered outcomes on 2 checked claims, with 1 adverse claim outcome. It ranks around the 93rd percentile of the scored universe and 92nd percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 65.4%. Key concern: ROCE trend is -6.4%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 92nd pctile, median 68 · Large: 83rd pctile, median 73
132 documents have extracted text, but claim history is not strong enough yet.
2/2 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 65.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.5%.
- ▸11 years of positive FCF.
Trust risks
- ▸ROCE trend is -6.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 30.70
- P/B
- 6.66
- EV/EBITDA
- 23.73
- Market Cap
- 13402.00Cr
Profitability
- ROE
- 22.80%
- ROCE
- 31.60%
- ROA
- 13.44%
- Dividend Y
- 0.18%
Growth (CAGR)
- Revenue 5Y
- 22.00%
- EPS 5Y
- 40.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- 38.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 27.84×
- Altman Z
- 7.37
- Book Value
- 169.00
Cash Flow
- FCF Yield
- 0.50%
- FCF Positive Y
- 11/5
- OCF
- 417.00 Cr
- EPS TTM
- 36.68
Shareholding
- Promoter Hold
- 65.42%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 84%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.