Shares of Action Construction Equipment (ACE) rose nearly 3% on June 20, reaching an intraday high of ₹1,560 apiece on the NSE. The surge followed ACE’s announcement of ongoing discussions with Japan-based Kato Works to establish a joint venture (JV) in India.
ACE, a leading player in the construction equipment sector, revealed plans to collaborate with Kato Works, a global manufacturer of mobile cranes, excavators, and other construction equipment. The proposed JV aims to produce medium and large-sized cranes, including truck cranes, crawler cranes, and rough terrain cranes. The collaboration is also expected to leverage advanced technology to develop value-added products for export.
Financially, ACE has shown impressive growth. For the March 2024 quarter, the company reported consolidated revenue of ₹835.84 crore, marking a 36% year-on-year increase. Full-year revenue surged nearly 35% to ₹2,913.8 crore in FY24, with net profit nearly doubling to ₹328.2 crore from ₹172.99 crore in the previous fiscal.
The market responded positively to the developments, with ACE shares closing slightly higher at ₹1,513 on the NSE, reinforcing its robust position among construction equipment manufacturers.
