One more product innovation and Business expansion update form company.
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The above orders are good news and seems market is reflecting it… The stock has zoomed from 68 to 274 in 1 year (nearly 300%).
PE is still reazonable at 30ish and comparable to 5 yr PE etc.
Am trying to read the latest transcript - https://www.ace-cranes.com/public/front/pdf/Q1_FY22_Earnings_Call_Transcript_ACE.pdf.
Does anyone see any fundamental shift in the stock in the past 1-2 yrs that represents the market valuation or future potential ?
Disc - Not invested. Interested, evaluating
Company on 23rd September meeting Determined and approved the issue price on 242 per Equity Share (including a premium of { 240 per
Equity Share), which is at a discount of 4.93 % (i.e. { 12.55 per Equity Share) to the floor price of {
254.55 per Equity Share.
Some interesting QIP buyers name :
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fund is controlled by Kenneth Andrade. their existing holding before this acquisition was 7 lac shares.
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Nice to see them getting award in Agri segment. Adds conviction to their quality and capability
Disc: Invested recently.
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Q2-FY-22
https://www.bseindia.com/corporates/anndet_new.aspx?newsid=c87c8ea6-d8c3-439c-87a6-3666ee03ec32
Order for supply of 55
Truck Mounted multifunction machines to Dakshin Haryana Bijli Vitran Nigam
(DHBVN) for a total consideration of approx. Rs. 23.30 Crore.
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Strong Q-o-Q and Y-o-Y Result from ACE
Concall on Monday (7/Feb)
Yoy result is bit of a drag or flat due to raw material inflation. I think mgmt had mentioned about a price hike taken in nov 21 to compensate for the raw material price. Need to check if that was not sufficient enough OR what would be the situation going forward in q4
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Q3 conference call key points other than financial numbers filed to exchange.
- Rev growth guidance increased to 23%-24%,against last guidance of 15%-20%.
- Construction equipment industry last year de-grown around 23%,but company grew rev and volume qoq.
- Raised money for inorganic growth,working on two small option,this quarter will inform exchange.
- Agri segment margin will bring to 12%-13% level this year,management confident about that.
- Rental segment is more than 50% market share.
- Container freight price increase impacted export business.
- Good demand in infra and construction segment.December order book picked up,november was slow,January is strong.
- In FY23 should be doing 100-150cr in Defence sector,possibility is that this should be exceeded.
- Multiple price hike done in last yr,around in total 20-26%,no price hike in this qtr Q4.
- Capacity utilization : crane - 50-60% construction equipment - 35% material handling - 80%(planning to expand quickly) agri - 35%
- Company target to do 2500cr in rev with 13-14% margin in 2 to 2.5 yr.
- Market share : material handling - 25%,in 1/2 yr it should be 28-30% mobile crane - 60-63%,hopeful next yr will cross 65-66%,backhoe loader and agri nominal market share,looking for increase rev.
- Q4 would be better that Q3 and similar or slight better than last yr Q4.
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I have been invested in ACE and ESCORTS since 2014. The market segments are very different for each company, but what i always felt is that ACE lacks strategic vision or at least they have not been able to communicate one.
Escorts grew from 1500 Cr MCap to 22,000 Cr MCap in last 7-8 years, they optimized their products, focused on agri, railway, construction and sold all other non core business (except escorts finance, which is in freeze mode), brought in a JV partners in 2017/19, and ultimately will be majority Japanese Kubota owned by end of this year. Shareholder returns have been amazing till now, and possibly with the joint Kubota merger, etc, there might be another few bagger from here over next 5-7 years.
Can ACE be the next Escorts? What are the things that Sourab Aggarwal and the Mgmt Team can do over next few months/years that will define this transition to the next league? Other Boarders, do add your thoughts. Thanks.
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Screener shows MIT fund bought more on ACE in march 2022 quarter. Seems the stock has not shown any reaction to this news yet but it adds on to my conviction more
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Can you repost the video link? What is it about?