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

Emkay Global Finance has buy call on (ACE) with a target price of Rs 345. The current market price associated with Action Building Equipment is Rs 329. 5.

Action Structure Equipment, incorporated in the year 1995, will be 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, Design Equipment and Material Handling Equipments for the year ending 31-Mar-2022.

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 Earnings of Rs 522. 55 Crore and up 37. 05 % through last 12 months same one fourth Total Revenue of Rs 363. 21 Crore. Company has documented net profit after tax of Rs 33. 86 Crore within 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, Doctor. Divya Singal. Company has Bran & Associates as its auditors. As upon 30-09-2022, the organization has a total associated with 12 Crore shares outstanding.

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

Promoter/FII Holdings
Promoters held 66. 76 per cent stake in the organization as associated with 30-Sep-2022, while FIIs owned 4. 65 per cent, DIIs 4. 56 %.

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