This small-cap construction vehicles manufacturer delivered mind-blowing returns of over 150% in just one year; do you hold it?

Shares of the company gained more than 100% in the last six months

Action Construction Equipment Limited has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price surged from Rs 306.40 on November 01, 2022, to Rs 857.50 on November 01, 2023, representing an increase of over 150% in a one-year holding period.

An investment of Rs 1 lakh in this company’s shares one year ago would have grown to Rs 2.50 lakhs today.

Action Construction Equipment Limited reported a strong first quarter for FY24, with net sales growth of 30.93% to Rs 651.61 crore, compared to Rs 497.68 crore in the same quarter last year. The operating profit also experienced a significant increase of 50.41%. The net profit for the quarter increased by 49.26% to Rs 67.57 crore, compared to the previous year’s same quarter.

Action Construction Equipment Limited (ACE) is engaged in the business of manufacturing and marketing hydraulic mobile cranes, mobile tower cranes, material handling equipment like forklifts, road construction equipment like backhoe loaders, compactors, motor graders and agriculture equipment like tractors, harvesters, rotavators, etc. The company is a market leader with a 63% market share in mobile and tower cranes. The company also exports to over 25 countries across the Middle East, Africa, Asia and Latin America.

Today, the stock opened at Rs 840.00, with a high and low of Rs 864 and Rs 826.25, respectively. The stock is currently trading at Rs 840.90, which increased by 0.78%. The stock has a 52-week high of Rs 864 and a 52-week low of Rs 264. The company has a ROCE of 26.2% and an ROE of 18.8% with a market capitalization of Rs 10,164 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.