Can this mid cap ace its big goals?

India's rapid infrastructure push is accruing benefits for several Indian construction equipment manufacturers. One such infrastructure play is Action Construction Equipment or ACE . The mid-cap company operates in four segments namely - cranes, construction equipment, material handling and agricultural equipment. The company derives nearly 70 per cent of its revenue from the cranes segment. It holds a 63 per cent share in the mobile cranes market and 60 per cent in tower cranes market domestically. ACE's profit after tax has grown nearly 26 times over FY15-23, led by operating leverage, evident by a decline in major costs as a percentage of revenue. It has also managed to reduce its power and fuel costs, and repairs and maintenance expenses (both as a percentage of revenue). Return on capital employed (ROCE) has leapt from nearly 6 per cent in FY15 to close to 29 per cent in FY23. ACE financials Astonishing growth figures leading to a share price growth of almost six times during the last two years Dec-23 Sep-23 Jun-23 Mar-23 Dec-22 Sep-22 Jun-22 Revenue (Rs cr) 753 673 652 614 556 492 498 YoY growth (%)