2 hrs ago
Action Construction Shares Rise 50% as ICICI Direct Sees Upside
Action Construction makes equipment used in construction projects.
Its share price has risen nearly 50% in six months.
On 22 September, the shares reached ₹1,262.90 during trading.
ICICI Direct believes the price could rise further.
It set a 12-month target of ₹1,510 and recommended buying the stock.
The brokerage expects the company’s sales and profit to grow over the next few years.
Demand for construction equipment has improved after customers adjusted to new emission rules.
Defence orders, exports and a joint venture may create additional growth.
Action Construction shares have gained nearly 50% over six months and 32% year to date.
The stock rose nearly 3% on 22 September, reaching an intraday high of ₹1,262.90.
ICICI Direct issued a buy recommendation with a 12-month target price of ₹1,510.
The brokerage expects revenue and PAT to grow at 14.7% and 16.3% CAGR, respectively, during FY26-FY28E.
Defence, exports and the KATO joint venture could provide additional growth beyond domestic construction equipment demand.
- Who
- Action Construction Equipment and ICICI Direct.
- What
- Action Construction shares have risen sharply, while ICICI Direct expects further upside and recommends buying the stock.
- Where
- The shares traded on the BSE.
- When
- The latest trading movement occurred on Tuesday, 22 September; the six-month performance was reported at that time.
- Why
- ICICI Direct cited the company’s leadership in mobile cranes, recovering equipment demand, government infrastructure spending, pricing power, and potential growth from defence and exports.
Key facts
- Six-month gain
- Nearly 50%
- Year-to-date gain
- 32%
- 22 September intraday high
- ₹1,262.90
- ICICI Direct recommendation
- Buy
- 12-month target price
- ₹1,510
- Q1FY27 equipment volume
- 2,740 units, up 17.2% year over year
- Expected FY27 defence and exports contribution
- 10–12% of revenue
Sources
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