Cummins India Share Price: Cummins India’s third quarter results were better than the market expectations. After this, the opinion of brokerage firms regarding this stock seems to be changing. Many analysts have advised to buy this stock. Brokerage firm Nuvama has increased the rating of this stock from ‘Reduce’ and has fixed its target price ₹ 3,400 per share. This is about 18.5% higher than the current price of this stock, Rs 2,869.65.
Nuwama says that Cummins India shares have fallen by about 40% from its highest level of Rs 4,171.90, but the company has shown stability due to strong operating margin and increasing demand. On this basis, 4% growth in the company’s earnings (EPS) during FY25E-27e has been estimated. At the same time, there is a possibility of growth of 15% CAGR in the company’s sales and an increase of 19% in operating profit margin.
HSBC has also recommended purchases in Cummins Inzia’s stock. However, he has reduced his target price for this stock from ₹ 4,200 to ₹ 3,500. HSBC said the company’s December quarter earnings were better than estimates, but the margin saw some weakness.
Quarterly results
Cummins India recorded a standalone net profit of ₹ 514 crore in the December quarter, which was ₹ 455 crore in the same period last year, ie 13% growth. According to analysts estimates, the profit was expected to be ₹ 485 crore.
The company’s standalone revenue rose by 21.8 percent to Rs 3,086 crore in December in December. The company’s operating profit (Ebitda) increased by 11.5 per cent to Rs 600 crore as compared to the previous year. However, the Ebitda margin came down to 19.4 per cent, which was 21.2 per cent in the same quarter last year.
Interim dividend declared
The Company India has announced to give interim dividend to shareholders along with quarterly results. Cummins Board has declared an interim dividend of ₹ 18 (900%) per share for FY 2024-25. Its record date has been fixed on 14 February and will be paid by 3 March.
Meanwhile, Cummins India shares closed at Rs 2,886 with an increase of 0.49 per cent on NSE on Monday 10 February today. So far this year, the company’s shares have fallen by about 10.66 percent.
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