Action Construction EquipmentNSE:ACE -1.52%93 Interest Coverage is 47.00 as of Mar. 2026, which is 297% above its 10-year median of 11.84. GuruFocus rates NSE:ACE with a GF Score™ of 93/100 and a GF Value™ of ₹1,207.69 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 169 Farm & Heavy Construction Machinery companies, Action Construction Equipment ranks better than 67.46% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Action Construction Equipment's
Operating Income
for the
three
months ended in Mar. 2026 was ₹1,575 Mil. Action Construction Equipment's Interest Expense for the
three
months ended in Mar. 2026 was ₹-34 Mil.
Action Construction Equipment's interest coverage for the quarter that ended in Mar. 2026 was 47.00.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Action Construction Equipment's Interest Coverage or its related term are showing as below:
NSE:ACE'
s Interest Coverage Range Over the Past 10 Years
Min: 1.92 Med: 11.84 Max: 22.19
Current: 21.69
NSE:ACE's Interest Coverage is ranked better than 67.46% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.32
vs NSE:ACE: 21.69
Action Construction Equipment (NSE:ACE) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Action Construction Equipment Interest Coverage Related Terms
Action Construction Equipment Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Action Construction Equipment Interest Coverage Chart
NSE:ACE vs CAT, DE, PCAR: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Action Construction Equipment's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Action Construction Equipment Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Action Construction Equipment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Action Construction Equipment's Interest Coverage falls into.
Action Construction Equipment Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Action Construction Equipment (NSE:ACE) has a Interest Coverage of 47.00 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Action Construction Equipment and its competitors. This is 297% above median its historical median of 11.84. Over the past decade, Action Construction Equipment's Interest Coverage has ranged from 1.92 to 22.19. According to the industry distribution chart, Action Construction Equipment ranks #55 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 32.5%.
Is Action Construction Equipment's Interest Coverage too high?
Action Construction Equipment's current Interest Coverage of 47.00 is 297% above median its 10-year median of 11.84. Over the past 10 years, this metric has ranged from a low of 1.92 to a high of 22.19. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.32. Action Construction Equipment's value of 47.00 is 404.3% above this industry median. Based on the distribution chart, Action Construction Equipment ranks #55 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Action Construction Equipment has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Action Construction Equipment's Interest Coverage compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Action Construction Equipment ranks #55 out of 169 companies for Interest Coverage. This puts Action Construction Equipment in the upper half of its industry. The industry median Interest Coverage is 9.32. Action Construction Equipment's value of 47.00 is 404.3% above this benchmark. Historically, Action Construction Equipment's own Interest Coverage has ranged from 1.92 to 22.19 over the past decade. While the company's 10-year median is 11.84 vs. the industry median of 9.32, Action Construction Equipment has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.32, based on 169 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Action Construction Equipment's current Interest Coverage of 47.00 is 404.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Action Construction Equipment and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Action Construction Equipment's current Interest Coverage is 47.00, which is 297% above median its own 10-year median of 11.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Action Construction Equipment stock overvalued right now?
Based on GuruFocus' analysis, Action Construction Equipment (NSE:ACE) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,207.69, compared to a current price of ₹988.10 — trading 18.2% below its estimated fair value. The current Interest Coverage is 47.00, which is 297% above median its 10-year median of 11.84 and 404.3% above the Farm & Heavy Construction Machinery industry median of 9.32. Action Construction Equipment's overall GF Score™ is 93/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Action Construction Equipment (NSE:ACE), the current Interest Coverage is 47.00 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Action Construction Equipment (NSE:ACE) Overvalued in 2026?
Based on GuruFocus' analysis, Action Construction Equipment stock appears to be undervalued.
The current stock price of ₹988.10 is trading 18.2% below its estimated GF Value™ of ₹1,207.69.
GuruFocus considers Action Construction Equipment to be Modestly Undervalued.
Key valuation signals for NSE:ACE:
Interest Coverage: 47.00 (297% above median its 10-year median of 11.84)
GF Value™: ₹1,207.69 vs. price of ₹988.10 (18.2% below fair value)
Industry Position: 404.3% above the Farm & Heavy Construction Machinery median (#55 of 169)
No single metric tells the full story. See the NSE:ACE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Action Construction Equipment Business Description
Action Construction Equipment Ltd is engaged in the business of manufacturing and marketing of Hydraulic Mobile Cranes, Mobile Tower Cranes, Crawler Cranes, Truck Mounted Cranes, Material Handling Equipments like Forklifts, Road Construction Equipments like Backhoe loaders, Compactors, Motor graders and Agriculture Equipments like Tractors, Harvesters, Rotavators, etc. The company's reportable segments are Crane, Material Handling and Construction equipment, and Agricultural equipment. The majority of its revenue is generated from its Cranes segment. Geographically, it derives maximum revenue from India and also has a presence in international markets.
93GF Score
Get the complete analysis for NSE:ACE
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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