Buy Action Construction Equipment, target price Rs 345: Emkay Global Financial Services

Emkay Global Financial Services has buy call on Action Construction Equipment (ACE) with a target price of Rs 345. The current market price of Action Construction Equipment is Rs 329.5.

Action Construction Equipment, incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 3905.93 Crore) operating in Engineering sector.

Action Construction Equipment key Products/Revenue Segments include Cranes, Construction Equipment and Material Handling Equipments for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 497.79 Crore, down -4.74 % from last quarter Total Income of Rs 522.55 Crore and up 37.05 % from last year same quarter Total Income of Rs 363.21 Crore. Company has reported net profit after tax of Rs 33.86 Crore in latest quarter.

The company’s top management includes Mr.Vijay Agarwal, Mrs.Mona Agarwal, Mr.Sorab Agarwal, Mrs.Surbhi Garg, Mr.Avinash Parkash Gandhi, Mr.Shriniwas Vashisht, Dr.Jagan Nath Chamber, Dr.Divya Singal. Company has Bran & Associates as its auditors. As on 30-09-2022, the company has a total of 12 Crore shares outstanding.

Investment Rationale
The brokerage is optimistic on the sector, driven by its strong tender pipeline, softening commodity prices and expectation of good order-inflow growth.

Promoter/FII Holdings
Promoters held 66.76 per cent stake in the company as of 30-Sep-2022, while FIIs owned 4.65 per cent, DIIs 4.56 per cent.