7 Indian Construction Equipment Manufacturers and Providers Stocks
The construction equipment sector plays a vital role in the rapid development of infrastructure projects in India. Here are seven companies that are driving this sector forward by providing essential machinery and equipment.
Note: All data is as of July 2024.
| Company | M. Cap (₹ Cr) | P/E | CMP (₹) | ROCE (%) | Debt to Equity | 3-Y Sales Growth (%) |
|---|---|---|---|---|---|---|
| Action Construction Equipment Ltd | 16,560 | 50.5 | 1,391 | 42.2% | NIL | 33.4 |
| Sanghvi Movers Ltd | 4,779 | 25.4 | 1,104 | 23.8% | 0.29 | 40.4 |
| Eimco Elecon (India) Ltd | 1,946 | 39.7 | 3,373 | 13.5% | NIL | 21.7 |
| Tara Chand Infralogistic Solutions Ltd | 670 | 44.2 | 441 | 16.5% | 0.91 | 16.0 |
| TIL Ltd | 2,039 | 8 | 306 | -50.4% | 5.44 | -40.2 |
| Brady & Morris Engineering Company Ltd | 242 | 28.7 | 1,074 | 40.9% | 0.33 | 26.1 |
| Crown Lifters Ltd | 309 | 56.0 | 275 | 18.4% | 0.80 | 32.1 |
Insights into Construction Equipment Suppliers
1. Action Construction Equipment Ltd
Action Construction Equipment Ltd. is a prominent player in the manufacturing and marketing of hydraulic mobile cranes, mobile tower cranes, and other construction equipment.
- Market Cap: ₹16,560 Cr
- P/E: 50.5
- CMP: ₹1,391
- ROCE: 42.2%
- Debt to Equity: NIL
- Sales Growth (3Years): 33.4%
Key Highlights:
- Capex plans of approx. ₹100 Cr for the current year and ₹50-60 Cr for the next year.
- Expanded in the defense sector with pending orders of ₹65 crores and upcoming orders worth ₹400-700 crores.
- Electric Crane ready for sale once government regulations are in place.
- Developing new models of cranes, Reach Stackers, Backhoe Loaders, and telehandlers.
- Exploring joint ventures and acquisitions in the crane segment.
- Plans to double revenues over the next three years and triple in five years.
2. Sanghvi Movers Ltd
Sanghvi Movers Ltd. provides hydraulic and crawler cranes to the infrastructure sector with a fleet that includes medium to large-sized telescopic and lattice boom cranes.
- Market Cap: ₹4,779 Cr
- P/E: 25.4
- CMP: ₹1,104
- ROCE: 23.8%
- Debt to Equity: 0.29
- Sales Growth (3Years): 40.4%
Key Highlights:
- Order book of ₹426 crore to be executed in FY25.
- Completed ₹334 crores in CAPEX, acquiring 34 cranes and 44 other pieces of equipment.
- Projected CAPEX for FY25 between 250-300 crores, funded 70% by bank balance and 30% by internal accruals.
3. Eimco Elecon (India) Ltd
Eimco Elecon (India) Ltd focuses on manufacturing and marketing equipment for underground and open-cast mines, including wheel loaders, dump trucks, and drill machines.
- Market Cap: ₹1,946 Cr
- P/E: 39.7
- CMP: ₹3,373
- ROCE: 13.5%
- Debt to Equity: NIL
- Sales Growth (3Years): 21.7%
Key Highlights:
- Coal India Ltd plans to boost underground coal production, benefiting Eimco with a growing order book from ₹50 crore in March 2023 to ₹152 crore in December 2023.
- Positioned to capitalize on the growth in the underground coal mining industry.
4. Tara Chand Infralogistic Solutions Ltd
Tara Chand Infralogistic Solutions Ltd specializes in steel material handling, warehousing, and deploying heavy lifting equipment.
- Market Cap: ₹670 Cr
- P/E: 44.2
- CMP: ₹441
- ROCE: 16.5%
- Debt to Equity: 0.91
- Sales Growth (3Years): 16.0%
Key Highlights:
- Planning a capex of ₹150 Crores over the next two years, funded through internal accruals and debt.
- Order book increased by 42% to ₹138.23 Crores, targeting 30% year-on-year growth.
5. TIL Ltd
TIL Ltd offers a range of material handling, lifting, and port equipment solutions and has received significant orders from multiple sectors.
- Market Cap: ₹2,039 Cr
- P/E: 8
- CMP: ₹306
- ROCE: -50.4%
- Debt to Equity: 5.44
- Sales Growth (3Years): -40.2%
Key Highlights:
- Secured orders from the Ministry of Defence under 'Make in India'.
- Significant orders from coal mines, steel plants, power, and petrochemical sectors.
- Actively seeking strategic solutions for a strong rebound.
6. Brady & Morris Engineering Company Ltd
This company manufactures material handling equipment and has enduring customer relationships across various industries.
- Market Cap: ₹242 Cr
- P/E: 28.7
- CMP: ₹1,074
- ROCE: 40.9%
- Debt to Equity: 0.33
- Sales Growth (3Years): 26.1%
Key Highlights:
- Engaged in diverse industries like steel, cement, power, sugar, chemicals, mining, and water management.
- Benefitting from governmental policies to boost manufacturing.
7. Crown Lifters Ltd
Crown Lifters Ltd supplies construction equipment and is expanding its operational capabilities and fleet.
- Market Cap: ₹309 Cr
- P/E: 56.0
- CMP: ₹275
- ROCE: 18.4%
- Debt to Equity: 0.80
- Sales Growth (3Years): 32.1%
Key Highlights:
- Ordered new crawler cranes with expected delivery in June 2024.
- Planning a capex of ₹30.00 Cr for the first two quarters of FY25, funded by cash flow, term loans, trade credit, and preference shares.
These companies are key players in the construction equipment industry, contributing significantly to India's infrastructure development with their robust product offerings and strategic growth initiatives.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice. Please conduct thorough research or consult with a financial advisor before making any investment decisions.
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