Action Construction EquipmentNSE:ACE -1.52%93 Operating Margin % is 15.29% as of Mar. 2026, which is 74% above its 10-year median of 8.78. GuruFocus rates NSE:ACE with a GF Score™ of 93/100 and a GF Value™ of ₹1,207.28 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 209 Farm & Heavy Construction Machinery companies, Action Construction Equipment ranks better than 89% on this metric.
Action Construction Equipment Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Action Construction Equipment's Operating Margin % or its related term are showing as below:
NSE:ACE'
s Operating Margin % Range Over the Past 10 Years
Min: 4.08 Med: 8.78 Max: 14.65
Current: 14.62
NSE:ACE's Operating Margin % is ranked better than 89% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs NSE:ACE: 14.62
Action Construction Equipment (NSE:ACE) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Action Construction Equipment Operating Margin % Related Terms
Action Construction Equipment Operating Margin % 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.
Action Construction Equipment Operating Margin % Chart
NSE:ACE vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Action Construction Equipment's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Action Construction Equipment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Action Construction Equipment's Operating Margin % falls into.
Action Construction Equipment Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 Operating Margin % of 15.29% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Action Construction Equipment and its competitors. This is 74% above median its historical median of 8.78. Over the past decade, Action Construction Equipment's Operating Margin % has ranged from 4.08 to 14.65. According to the industry distribution chart, Action Construction Equipment ranks #23 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 11%.
Is Action Construction Equipment's Operating Margin % too high?
Action Construction Equipment's current Operating Margin % of 15.29% is 74% above median its 10-year median of 8.78. Over the past 10 years, this metric has ranged from a low of 4.08 to a high of 14.65. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Action Construction Equipment's value of 15.29% is 125.5% above this industry median. Based on the distribution chart, Action Construction Equipment ranks #23 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. 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 Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Action Construction Equipment ranks #23 out of 209 companies for Operating Margin %. This places Action Construction Equipment in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.78. Action Construction Equipment's value of 15.29% is 125.5% above this benchmark. Historically, Action Construction Equipment's own Operating Margin % has ranged from 4.08 to 14.65 over the past decade. While the company's 10-year median is 8.78 vs. the industry median of 6.78, 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 Operating Margin % for a Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Action Construction Equipment's current Operating Margin % of 15.29% is 125.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Action Construction Equipment and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Action Construction Equipment's current Operating Margin % is 15.29%, which is 74% above median its own 10-year median of 8.78. 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 ₹1,207.28, compared to a current price of ₹988.10 — trading 18.2% below its estimated fair value. The current Operating Margin % is 15.29%, which is 74% above median its 10-year median of 8.78 and 125.5% above the Farm & Heavy Construction Machinery industry median of 6.78. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Action Construction Equipment (NSE:ACE), the current Operating Margin % is 15.29% 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 ₹1,207.28.
GuruFocus considers Action Construction Equipment to be Modestly Undervalued.
Key valuation signals for NSE:ACE:
Operating Margin %: 15.29% (74% above median its 10-year median of 8.78)
GF Value™: ₹1,207.28 vs. price of ₹988.10 (18.2% below fair value)
Industry Position: 125.5% above the Farm & Heavy Construction Machinery median (#23 of 209)
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
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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