Buy Action Construction Equipment, target price Rs 450: Axis Securities

Axis Securities has buy call on Action Construction Equipment with a target price of Rs 450. The current market price of Action Construction Equipment is Rs 400.35. Axis Securities recommended to keep stop loss at Rs 374.

Action Construction Equipment, incorporated in the year 1995, is a Small Cap company (having a market cap of Rs 4702.60 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 564.01 Crore, up 13.30 % from last quarter Total Income of Rs 497.79 Crore and up 27.76 % from last year same quarter Total Income of Rs 441.46 Crore. Company has reported net profit after tax of Rs 46.70 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 31-12-2022, the company has a total of 12 Crore shares outstanding.

Investment Rationale
Forming a series of higher tops and bottoms ,rising volumes on rally signals increased participation.

Promoter/FII Holdings
Promoters held 66.76 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.97 per cent, DIIs 3.44 per cent.