Action Construction received an order for 99 forklifts from the Defence Ministry

The Haryana-based Action Construction Equipment is a manufacturer and marketer of various equipment. Its products include crawler cranes, truck-mounted cranes, mobile tower cranes, hydraulic mobile cranes, material handling equipment like forklifts, road construction equipment like backhoe loaders, compactors, and motor graders, and agricultural equipment like tractors, harvesters, and rotavators.

Action Construction Equipment Ltd. stock jumps more than 3% today:

The share price of Action Construction Equipment Ltd. increased by more than 3% today, trading at Rs. 1278 during the first half of the session. Right now the stock is trading at Rs. 1243.30 per share. Compared to the 13.2% increase in the benchmark BSE Sensex during this same period, the company’s share price has increased by 47.46 percent year to date.

Action Construction Equipment Ltd. got the order from MoD:

After the company received an order for forklifts from the Ministry of Defence, the share price of construction vehicles shot up. The Ministry of Defence (MoD) has awarded Action Construction Equipment a prestigious order for the supply of 99 forklifts as part of its ongoing efforts to expand its business in the defense sector. The company made this announcement in an exchange filing on Monday. Despite this, the business kept the order amount for this deal a secret.

Action Construction Equipment Ltd., Q1 FY 25 result:

The company reported a 14.07% year-over-year increase in revenue, reaching Rs 761.81 crore, for the April-June quarter of the financial year 2024–25 (Q1FY25). On a quarterly basis, however, revenue decreased by 11.08% in contrast to the preceding trimester.

The June quarter of FY25 saw a net profit of Rs 84.18 crore, up 24.62% from the same period the previous year, albeit on a quarterly basis; it fell by 14.49%. The company, which has a total market capitalization of Rs 14,837.77 crore, is trading at a price-to-earnings multiple of 42.76 times with an earnings per share of Rs 28.89. 

Conclusion: Action Construction Equipment Ltd. will see substantial growth as a result of the government’s new project assign by the Ministry of Defence.

Disclaimer: This blog 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.