Promoter sold 13,00,000 Shares of This Multibagger Construction Equipment Company; Must Watch

The shares of the company have delivered a return of around 640 per cent to its shareholders in just 3 years.

Action Construction Equipment Ltd is engaged in the business of manufacturing and marketing hydraulic mobile cranes, mobile tower cranes, material handling equipment such as forklifts, road construction equipment including backhoe loaders, compactors, motor graders, and agricultural equipment such as tractors, harvesters, and rotavators. It was incorporated in 1995 and concluded its IPO in 2006.

On Tuesday, shares of Action Construction gained 1.20 per cent to Rs 1447.40 per share from its previous closing of Rs 1430.30 per share.

The company’s promoter Mona Agarwal sold 13,00,000 shares on Tuesday that is June 11 at an average price of Rs 1420 each. The stock gave multibagger returns of over 640 per cent in 3 years.

As per Quarterly Results in Q4 FY24, the company reported a quarterly revenue from operation of Rs 836 crore compared to a revenue of Rs 614 crore, representing a growth of 36 per cent on YoY basis. The company posted a net profit of Rs 98 crore in Q4 FY24 compared to a net profit of Rs 47 crore. Turning attention towards the annual performance, it reported a revenue of Rs 2914 crore and a net profit of Rs 328 crore.

The company manufactures products for diverse customer needs:

• Cranes - Pick & Carry Crane, Lorry Loaders Crane, Self-Erecting Tower Crane, Crawler Crane, Truck Crane, and Tower Crane.
• Construction Equipment - Backhoe Loader, Wheel Loader, Soil Compactor & Tandem Vibratory Roller, and Motor Grader.
• Material Handling - Forklift Trucks, Warehousing Equipment, and Piling Rig.
• Agriculture Equipment - Tractor, Track Combine, Wheel Harvester, and Rotovator.

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.