Why is Action Construction Equipment Ltd ?
1
Stock is technically in a Mildly Bearish range
- The stocks Bollinger Band and KST technical factors are also Bearish
2
With ROE of 26.4, it has a Very Expensive valuation with a 10.3 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.33%, its profits have risen by 40.3% ; the PEG ratio of the company is 0.9
3
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -0.94% in the last 1 year, its fall in the stock was much higher with a return of -17.33%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Engineering - Industrial Equipments)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Action Const.Eq. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Action Const.Eq.
-17.05%
-0.40
43.78%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
22.72%
EBIT Growth (5y)
42.39%
EBIT to Interest (avg)
13.74
Debt to EBITDA (avg)
0.45
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
2.13
Tax Ratio
25.37%
Dividend Payout Ratio
7.26%
Pledged Shares
0
Institutional Holding
13.66%
ROCE (avg)
26.41%
ROE (avg)
18.07%
Valuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
34
Price to Book Value
10.27
EV to EBIT
31.34
EV to EBITDA
29.50
EV to Capital Employed
12.77
EV to Sales
4.35
PEG Ratio
0.91
Dividend Yield
0.17%
ROCE (Latest)
37.91%
ROE (Latest)
26.43%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
13What is working for the Company
PAT(HY)
At Rs 206.48 cr has Grown at 27.32 %
NET SALES(Q)
Highest at Rs 875.11 cr
PBDIT(Q)
Highest at Rs 134.89 cr.
PBT LESS OI(Q)
At Rs 119.32 cr has Grown at 30.65 %
EPS(Q)
Highest at Rs 9.38
-2What is not working for the Company
INTEREST(9M)
At Rs 24.77 cr has Grown at 23.66 %
Loading Valuation Snapshot...
Here's what is working for Action Const.Eq.
Net Sales - Quarterly
Highest at Rs 875.11 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 134.89 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 119.32 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 119.32 cr has Grown at 30.65 %
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 111.68 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 111.68 cr has Grown at 26.5 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 9.38
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Action Const.Eq.
Interest - Nine Monthly
At Rs 24.77 cr has Grown at 23.66 %
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)