Action Construction Equipment Ltd (ACE) is India’s leading manufacturer of mobile cranes, tower cranes, forklifts, and agricultural equipment, with a dominant market position in several segments. Known as the world’s largest Pick & Carry crane maker, ACE holds over 63% market share in mobile cranes and 60% in tower cranes in India. Backed by strong execution, consistent profit growth, and a near-debt-free balance sheet, ACE has emerged as a key beneficiary of India’s infrastructure and rural capex cycle. This article provides a fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Ownership: Promoter holding at 65.42% – controlled by the Garg family
Listed: Yes – on BSE (532719) and NSE (ACE)
Clarifications:
Is ACE a good stock to buy? Yes—for long-term, growth-oriented investors who believe in India’s infrastructure and rural mechanization story.
Why is ACE share falling? Due to profit booking after a 60%+ rally in 2024, global supply chain concerns, and short-term margin pressure—not business deterioration.
What is ACE’s market share? Over 63% in mobile cranes, 60% in tower cranes, and 19% in forklifts in India.
India’s No. 1 defence stock? Not applicable—ACE is an industrial equipment company, not a defence firm. Top defence stocks include HAL and BEL.
ACE: Key Financial Snapshot
Metric
Value
Market Capitalization
₹10,943.15 Cr
Current Share Price
₹918
52-Week High / Low
₹1,180 / ₹720
P/E (TTM)
25.16
P/B (TTM)
5.79
Book Value (TTM)
₹158.81
EPS (TTM)
₹36.53
ROE
28.67%
ROCE
40.32%
Dividend Yield
0.22%
Debt
₹14.47 Cr (near debt-free)
Cash Reserves
₹40.19 Cr
Sales Growth (YoY)
14.04%
Profit Growth (YoY)
23.19%
Shareholding Pattern
Category
Holding (%)
Promoters
65.42%
Public (Retail)
22.42%
Foreign Institutions (FII)
10.40%
Domestic Institutions (DII)
1.76%
Others
0%
Note: Strong promoter control ensures strategic focus; low DII ownership may limit institutional re-rating.
ACE Share Price Target Forecast (2026–2030)
Based on infrastructure tailwinds, market leadership, and capital efficiency, we project the following realistic price ranges:
Year
Target Price Range (₹)
2026
₹960 – ₹1,060
2027
₹1,020 – ₹1,150
2028
₹1,080 – ₹1,250
2029
₹1,150 – ₹1,340
2030
₹1,220 – ₹1,430
These targets assume:
EPS CAGR of 18–20% (supported by 23% recent profit growth)
P/E range of 22–25x (reasonable for a high-ROCE industrial)
Sustained ROCE above 40% and minimal debt
Year-wise Breakdown
ACE Share Price Target 2026
Year
Target 1
Target 2
2026
₹960
₹1,060
Rationale: Near-term upside supported by order book strength in cranes and tractors. However, valuation (P/E 25x) limits aggressive re-rating.
ACE Share Price Target 2027
Year
Target 1
Target 2
2027
₹1,020
₹1,150
Rationale: Expected benefit from PM GatiShakti, state capex, and rural recovery. Export traction in Africa and the Middle East adds diversification.
ACE Share Price Target 2028
Year
Target 1
Target 2
2028
₹1,080
₹1,250
Rationale: By 2028, agri-equipment segment could contribute meaningfully to margins. ROCE sustainability (~40%) supports premium valuation.
ACE Share Price Target 2029
Year
Target 1
Target 2
2029
₹1,150
₹1,340
Rationale: Long-term play on India’s construction boom and farm mechanization. Success depends on product innovation and after-sales service expansion.
ACE Share Price Target 2030
Year
Target 1
Target 2
2030
₹1,220
₹1,430
Rationale: The upper end assumes sustained 20%+ EPS growth, debt-free status, and market share gains in new categories like compactors and motor graders.
Strengths vs Risks
✅ Strengths
Dominant market share in multiple equipment segments
Exceptional ROCE (40.3%) and ROE (28.7%)
Near debt-free with strong cash flow
Beneficiary of India’s infrastructure and rural capex
⚠️ Risks
Low dividend yield (0.22%) – not suited for income investors
Cyclical exposure to construction and agriculture
High P/B (5.8x) leaves little margin for error
Global supply chain volatility impacts input costs
Investment Suitability
Factor
Assessment
Risk Profile
Moderate (quality mid-cap)
Time Horizon
Long-term (5+ years)
Volatility
Moderate
Dividend/Income
Low (0.22% yield)
Ideal Investor
Growth-focused investor bullish on Indian manufacturing and infrastructure
FAQs
Yes—for long-term portfolios. Avoid for short-term trading due to valuation sensitivity.
63%+ in mobile cranes, 60%+ in tower cranes, and 19% in forklifts.
Due to profit booking, global input cost pressure, and short-term margin concerns—not fundamental weakness.
ACE is not a defence company. Top defence stocks are Hindustan Aeronautics (HAL) and Bharat Electronics (BEL).
Final Verdict
Action Construction Equipment is a high-quality, market-leading industrial company with best-in-class capital efficiency. While its valuation is fair, its strategic relevance to India’s capex cycle makes it a solid long-term compounder. Our 2026–2030 price targets (₹960–₹1,430) reflect steady appreciation—not speculative hype. Investors should accumulate on dips with a 5-year horizon.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
