1230 per cent returns: This multibagger stock reports highest ever quarterly revenues; Do you own it?
Moreover, the stock has zoomed more than 230 per cent in just 1 year
On Friday, Action Construction Equipment (ACE) surged more than 1 per cent to trade an intraday high of Rs 784 apiece on BSE. The scrip witnessed some profit booking and closed 1.49 per cent down at Rs 762.05 per share on BSE.
ACE, a renowned and established brand, holds a notable presence across diverse sectors such as construction, infrastructure, manufacturing, logistics, and agriculture. The company stands as the world's largest manufacturer of Pick & Carry cranes, commanding a substantial 63 per cent market share in the mobile cranes segment within the country. Additionally, ACE boasts a commanding market share of over 60 per cent in the domestic Tower Cranes segment.
During the first quarter of the fiscal year 2024 (Q1FY24), ACE achieved its highest-ever quarterly revenues, marking an impressive 28 per cent year-on-year (YoY) growth, amounting to Rs 667.9 crore. The company's EBITDA surged by over 50 per cent from the same quarter of the previous year, reaching Rs 97.8 crore. Net profit also experienced substantial growth, surging by 49.2 per cent compared to the corresponding quarter of the previous year, resulting in a figure of Rs 67.6 crore.
This impressive performance was attributed to various factors, including margin expansion driven by operating leverage, an improved product mix with enhanced price realizations, effective cost control measures, and a favorable decline in commodity prices. Looking ahead, the company stands to benefit from the Government of India's persistent emphasis on infrastructure development, coupled with the frontloading of capital expenditure announced in the Union Budget of 2023. These factors are expected to contribute positively to ACE's growth in the fiscal year 2024.
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Moreover, ACE has strategic plans to elevate the proportion of export revenues significantly over the medium term. The company is also exploring opportunities in the Defense sector as part of its growth strategy.
The stock has witnessed significant buying activity as it has given multibagger returns of more than 1230 per cent in just 3 years. Moreover, the stock has zoomed more than 230 per cent in just 1 year. Keep a close eye on this trending stock.
Disclaimer: The article is for informational purposes only and not investment advice.