Action Construction Equipment

Action Construction Equipment: The company is engaged in the manufacturing of mobile crane in India. It has entered into series of marketing tie-ups with leading foreign companies like Autogru PM-Italy, Zoomlion-China, Maber-Italy, Tigieffe SRL-Italy, which facilitate the availability of latest technology and machines from around the world.
We are optimistic that the company would be able to maintain its numero uno position within the domestic pick-and-carry cranes segment. Further, the company's wide range of product offerings, wide pan-India distribution network, and recent cost cutting initiatives, put it in a strong position in comparison to its peers.

 

This is a hope stock completely linked to a revival in Indian economic activity. Management has suggested that they would not require any new capex until revenue doubles, so there is a lot of operating leverage. Question is when will the infrastructure and construction activity pick up.

If you want to play the infra revival theme but are vary of high debt companies like Rinfra and GMR this is a great proxy and might give outsized returns over a 2-3 year time frame.