Heavy Engineering Equipment Maker Secures Rs 420 Crore Contract from Ministry of Defence; Single Largest Order for 1,121 Rough Terrain Forklift Trucks
The company has a market cap of Rs 484 crore with a PE of 37.2x, an ROE of 30.6 per cent and a ROCE of 42.3 per cent.
In a significant boost to India’s defence infrastructure and indigenous manufacturing capabilities, Action Construction Equipment Limited (ACE) has secured the largest order in its history, reinforcing its commitment to the Government of India’s ‘Make in India’ and ‘Aatma Nirbhar Bharat’ initiatives.
The Ministry of Defence (MoD) has signed contracts, in the presence of Defence Secretary Shri R K Singh, for the procurement of 1,868 Rough Terrain Fork Lift Trucks (RTFLT), with ACE securing a dominant 60 per cent share of the order. ACE will deliver 1,121 RTFLTs along with attachments and accompanying accessories at a total value of Rs 420.00 crores.
The RTFLT is a mission-critical asset, designed to enhance combat readiness and logistical efficiency across the Indian Army, Indian Air Force, and Indian Navy. By reducing manual handling of vast quantities of essential supplies, the RTFLT significantly improves the operational effectiveness of the Defence forces.
ACE was awarded this breakthrough contract after successfully demonstrating the superior capability of its equipment through rigorous performance testing. This milestone order underscores the company’s technological expertise and robust R&D capabilities, reinforcing its position as a key contributor to India’s self-reliance in defence manufacturing.
“This is a momentous achievement for ACE, marking our single largest order to date and a testament to our unwavering commitment to innovation and excellence. We take immense pride in playing a crucial role in strengthening our nation’s defence logistics with indigenously designed and manufactured solutions”, said, Sorab Agarwal - Executive Director - ACE
About the Company
Action Construction Equipment Ltd. engages in the manufacture and sale of cranes. It includes manufacturing and marketing of hydraulic mobile cranes, mobile tower cranes, crawler cranes, truck mounted cranes, material handling equipment like forklifts, road construction equipment like backhoe loaders, compactors, motor graders and agriculture equipment like tractors, harvesters and rotavators. The firm operates through the following segments: Cranes, Material Handling, Construction Equipment and Agri Equipment. The company was founded by Vijay Agarwal on January 13, 1995 and is headquartered in Palwal, India.
The company has a market cap of Rs 484 crore with a PE of 37.2x, an ROE of 30.6 per cent and a ROCE of 42.3 per cent. Investors should keep an eye on this Mid-Cap penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.