The base is already high when it went to Capex spending on infra went 11Lakh crore last year, so it only makes sense to have a more moderated growth in spending, increasing it at a rate of 25-30% CAGR isn’t sustainable, but you have to note that its already a high Capex spend, they are the market leader in crane segment, and ACE’s capacity can be increased much further when you compare them to other global leaders that manufactures crane. But the stock compounding at 40-50% CAGR from current levels, is an insane ask tbh The budgeted spending is intact and there are no issues with it as per me.
They will need more capacity, to deliver growth, they are currently incurring CAPEX, and also have set target to double revenues by FY26 or FY27 if I remember it correctly.
(Btw, what stock will do, no one knows)
disclosure : invested.
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