Buy ACE; target of Rs 213: Joindre Capital Services

Joindre Capital Services' research report on ACE

Action Construction Equioment Ltd (ACCE) incorporated in 1995, manufactures material‐handling and construction equipment. It has four segments: Cranes (65% of sales), material handling equipment (7%), construction equipment (7%), and agriculture equipment (21%). ACCE is a leading manufacturer of mobile cranes (63% market share) and tower cranes (60%) in India. ACCE also caters to a large clientele base, (with over 15000 customers) which includes major Indian as well as international players such as Reliance, L&T, BSES, BHEL, Gammon, NCC, Gujarat Ambuja, IISCO, Simplex, Coal India, etc & its products are used in sectors like infrastructure, construction, roads, engineering, coal mines, chemical and fertilizer plants, power stations, ports, heavy project engineering, railways, cement, oil, defense etc.

Outlook

Hence we believe that the ACE stock should be purchased at the current price for a price target of around Rs 213 over the next 12 to 18 months.