Action Construction Equipment shares rise over 3% on securing new order from Defence Ministry

Action Construction Equipment (ACE) Limited shares jumped more than 3% in morning trade on Tuesday, September 10, after the company announced securing a new order from the Defence Ministry.

The material handling and construction equipment manufacturing company informed the bourses that it has bagged an order from the Ministry of Defence (MoD) for the supply of 99 forklifts.

The order strengthened its efforts to expand business in the defence sector, according to the company.

“This order demonstrates our efforts under the ‘Make in India’ and ‘Aatma Nirbhar Bharat’ initiatives of the Government of India,” the company informed the stock exchanges in a filing, without revealing financial details of the order.

Shares of Action Construction Equipment Ltd gained 3.42% to hit an intraday high of ₹1,278 per share on the NSE. However, the stock pared some of its early gains to trade 0.78% higher at ₹1,245.3 apiece on the NSE at 12:18 pm.

ACE has a majority market share in the mobile and tower cranes segment. Its product portfolio also includes mobile and fixed tower cranes, crawler cranes, truck-mounted cranes, forklifts, tractors and harvesters, and other construction equipment. The company has a presence in all major Infrastructure, construction, heavy engineering and industrial projects across the country.

The company reported a 12.82% jump in revenue from operations to ₹733.63 crore in the April-June quarter of FY25 compared to the year-ago period.

Its EBITDA during the quarter increased 28.73% to ₹125.5 crore compared to the same period a year ago. The company’s EBITDA margins expanded 212 basis points to 17.11% in Q1FY25 from 15% in the year-ago quarter.

The company reported a 24.46% growth in profit after tax at ₹83.71 crore compared to ₹67.26 crore in the corresponding quarter of the preceding fiscal.

Margin expansion continued, driven by operating leverage, better product mix with improved price realizations, efficient cost control measures and favourable commodity prices, it had stated.