ACE shares hit a daily high of Rs 1,245.60 on September 30 after it won an order for 74 backhoes from the defense ministry.
Action Construction Equipment Limited, or ACE, told exchanges on September 30 that the Border Roads Organization had ordered 74 four-wheel drive backhoes.
The Border Roads Organization is under the Ministry of Defense and looks after roads and other infrastructure in border areas.
A backhoe is an excavating machine with a bucket at the front and a digging arm at the back. Builders use it for trenches, roads and earthmoving.
No order value or delivery date has been reported so far. That leaves the size of the deal unclear at this time. ACE said the win is part of its plan to grow its defense business.
It also fits the government’s Make in India and Aatmanirbhar Bharat units, which support home-built products.
The company manufactures cranes, earthmoving machines and other equipment used in construction and infrastructure works. Their latest results provide some context.
In the June quarter, revenue rose 20.49% to Rs 785 crore from Rs 652 crore a year earlier. Compared to the previous quarter, it fell by 23.68%.
The board was due to meet on July 20 to consider those results. The stock also went ex-dividend on September 3 for a payout of Rs 2 per share. Around 3.43 lakh shares changed hands.
It is up 11.03% over the past month and 30.62% so far this year, although it has lost 1.67% over the past week. Its 52-week high is Rs 1,268.00, set on September 21.
At the close, the stock settled at Rs 1,232.00 on the NSE, up 2.17% from the previous close of Rs 1,205.80.
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