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Action Construction Equipment Limited (ACE) Fair Value & Analysis

Industrials · IN · Market cap ₹127B

AC Action Construction Equipment Limited ACE · BSE
Price₹1,070
Fair Value₹592.85
Upside-44.6%
Quality62/100
Mixed Growth
Solidly profitable · 12.8% net margin
Low debt · generates free cash flow
Moderate moat 64/100
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Evidence: High Range ₹362.38 – ₹1,008 Share as image

Fair value as of: Aug 3, 2026

From 24 valuation models · updated today

Share price +6.9% over the past month.

A solid business, but screening 45% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹1,008). The favourable scenario is already priced in.
  • The model range is unusually wide (₹362.38 to ₹1,008). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹1,597 ₹139.68 Fair Value ₹592.85 Apr 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 3, 2026.

How to read this chart

60‑month range ₹139.68 – ₹1,597 · fair‑value band ₹362.38 – ₹1,008 · the ₹1,070 price screens above the ₹592.85 fair value. Dashed = 300-day average. As of Aug 3, 2026.

Which stocks are undervalued right now? Check free Discover now →

Analysis

Action Construction Equipment Limited (ACE) currently trades at ₹1,070, while our model-based Fair Value estimate is ₹592.85, implying the stock looks roughly 44.6% overvalued today. We read business quality at 62/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Action Construction Equipment Limited generated revenue of ₹34.1B at a net margin of 12.8%. Revenue grew 20.5% year over year. It earns a return on equity of 22.9%. Net debt stands at ₹18.8M. Fundamentals as of Aug 3, 2026

Our scenario range runs from ₹362.38 (bear case) to ₹1,008 (bull case); at ₹1,070, the current price sits above that range. The share trades about 9% below its 52-week high and 43% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 12% fair-value upside, at -45%, ACE screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹381.83 ₹765.91 ₹1,370 80
Residual Income ₹231.50 ₹308.08 ₹1,355 76
Rev-Margin DCF ₹382.51 ₹711.28 ₹1,169 74
All 24 models by family
DCF Models
FCF DCF ₹391.92 ₹726.32 ₹1,547 38
Owner Earnings ₹431.30 ₹868.58 ₹1,705 31
5Y Revenue Exit ₹382.51 ₹726.14 ₹1,217 39
5Y EBITDA Exit ₹401.65 ₹768.44 ₹1,253 41
5Y P/E Exit ₹468.95 ₹917.22 ₹1,463 38
10Y Revenue Exit ₹369.48 ₹707.42 ₹1,278 36
10Y EBITDA Exit ₹396.24 ₹739.70 ₹1,311 37
10Y P/E Exit ₹442.20 ₹853.25 ₹1,499 35
Earnings-Based
Graham-Dodd ₹237.14 ₹1,372 ₹1,909 54
Lynch FV ₹387.41 ₹553.44 ₹719.47 50
PEG = 1.0 ₹387.41 ₹553.44 ₹719.47 46
EPV ₹340.55 ₹396.41 ₹445.29 59
Multiples
P/E Multiple ₹523.10 ₹697.47 ₹871.83 63
P/S Multiple ₹444.64 ₹592.85 ₹741.06 58
P/B Multiple ₹380.14 ₹506.85 ₹633.57 55
EV/EBIT ₹549.39 ₹730.72 ₹912.05 53
EV/EBITDA ₹427.11 ₹567.68 ₹708.25 54
EV/Revenue ₹372.09 ₹529.25 ₹686.40 43
Asset-Based
NCAV (Graham) ₹84.48 ₹113.20 ₹168.95 50
Growth DCF
Growth DCF ₹381.83 ₹765.91 ₹1,370 80
Rev-Margin DCF ₹382.51 ₹711.28 ₹1,169 74
Economic Profit
Residual Income ₹231.50 ₹308.08 ₹1,355 76
ROIC Compounder ₹407.00 ₹574.85 ₹807.62 72
Growth Earnings
Growth-Adj P/E ₹559.45 ₹799.22 ₹1,039 68

Widest divergence: Growth Earnings (₹799.22) versus Asset-Based (₹113.20). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹34.1B
Revenue growth (YoY) +20.5%
Net margin 12.8%
Return on equity 22.9%
Free cash flow ₹3.2B FY2026
P/E ratio 29.2
More key figures
Operating margin 13.8%
EPS (TTM) ₹36.70
EPS growth (YoY) +22.3%
Net debt ₹18.8M FY2022

Figures from reported company fundamentals · as of Aug 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 62

Profitability 68
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 53
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Action Construction Equipment Limited reported revenue of ₹32.8B in FY2026 versus ₹16.3B in FY2022, a compound +19.1%/yr. Reported net income was ₹4.2B in FY2026, compounding +41.0%/yr from FY2022.

Growth Quality 94/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹32.8B
Latest YoY
−1.4%
Avg. growth/yr (3Y)
+15.0%
Avg. growth/yr (5Y)
+21.7%
Avg. growth/yr (12Y)
+15.0%
Revenue +19.1%/yr
FY22 ₹16.3B
FY23 ₹21.6B
FY24 ₹29.1B
FY25 ₹33.3B
FY26 ₹32.8B
Net income +41.0%/yr
FY22 ₹1.1B
FY23 ₹1.7B
FY24 ₹3.3B
FY25 ₹4.1B
FY26 ₹4.2B

ACE screens 45% overvalued. Compare with Caterpillar Inc →

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Cite: Fair Value Calculator (2026). "Action Construction Equipment Limited Fair Value". https://www.fairvalue-calculator.com/stock/ACE.BSE

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Action Construction Equipment Limited (ACE) overvalued or undervalued?
As of Aug 3, 2026, our model estimates a fair value of ₹592.85 versus a price of ₹1,070, about −45% (overvalued).
What is the fair value of ACE?
Our model-based fair value for Action Construction Equipment Limited is ₹592.85 (as of Aug 3, 2026), built from audited fundamentals. The current price is ₹1,070.
What is the quality score of ACE?
Action Construction Equipment Limited has a Quality Score of 62/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Action Construction Equipment Limited (ACE)?
Action Construction Equipment Limited reported trailing-twelve-month revenue of about ₹34.1B (latest available figure, as of Aug 3, 2026).
What is the net profit margin of ACE?
The net profit margin of Action Construction Equipment Limited is about 12.8%, meaning it keeps roughly 12.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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