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Action Construction Equipment Limited Q4 FY24 Earnings Conference Call May 22, 2024 MANAGEMENT: MR. SORAB AGARWAL -...

With massive investments pouring into infra projects, ancillary sectors such as crane are also experiencing a surge in demand.

The BSE midcap index rose 1.6 percent and the smallcap gained nearly 3 percent

Dipan Mehta of Elixir Equities advises remaining invested in quality stocks even if they are overvalued. He highlights the BAT stake sale in ITC and the slow growth in its tobacco and FMCG businesses. He also discusses the preference for large private sector banks and positive outlook on the IT sector.

Action Construction Equipment witnessed robust revenue and volume expansion in every segment. In the recently concluded quarter, the company saw a 30% YoY growth in the cranes segment, nearly 100% YoY growth in the construction equipment segment, a 26% YoY growth in the material handling equipment segment, and a 33% growth in the agri equipment segment.

Man Industries (India) Ltd (MAN) reported significantly higher sales growth with 119% y-o-y (year-on-year) rise to Rs1,108 crore. Ooperating profit margin expanded 290bps (basis points) y-o-y to 6.3%.

Action Construction Equipment, Jyothy Labs and ITD Cementation India - to give returns going up to 174% in the last one year.

“The equipment manufacturers are definitely there, the cement is also seeing some life, steel is seeing some life because these are all essential ingredients for any kind of construction and that is the sector I have been looking at and I have nibbled at over the last three, four months.”

"When you look at valuation, one has to always think about what the stock has done in the past year or so or couple of years and then take a call because the growth here that most of the automobile companies are showing in terms of top-line growth is fairly muted. It is either single digits or early double-digit kind of numbers. These are not great numbers that essentially help valuations."

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