Shares of Cummins India Ltd. climbed 8.55% as of 10:00 am, to Rs 124.45 apiece in trade on Thursday after the third-quarter net profit exceeded analyst expectations and board declared interim dividend of Rs 12 per share. The NSE Nifty 50 index was trailing by XX%.
Cummins’s net profit rose 65.85% at Rs 413.8 crore as compared to the same quarter of the previous financial year. The consensus analyst estimates pooled by Bloomberg pegged the net profit at Rs 269.7 crore for the given period.
Similarly, Company’s revenue was 25.31% higher annually at Rs 2,185.04 crore in the said quarter of the ongoing fiscal, above the Bloomberg estimate of Rs 2,038.65 crore.
In an exchange filing released by the company on exchanges it noted the impact of the recent budget on the future outlook of Cummins India Ltd.’s business.
“India has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market,” the release stated.
Cummins India Q3 FY23 (Consolidated, YoY)
- Revenues up 25.31% at Rs 2,185.04 crore. [Bloomberg estimate: Rs 2,038.65 crore]
- Ebitda up 51.57% at Rs 413.10 crore [Bloomberg estimate: Rs 311.1 crore]
- Ebitda margin at 18.91% vs. 15.63%
- Net profit up 65.85% at Rs 413.8 crore [Bloomberg estimate: Rs 269.7 crore]
- The board approved an interim dividend of Rs 12 per share.
The stock rose as much as 9.75% intraday, rising the most in over 52 weeks to Rs 1,618 apiece.
Total traded volume stood at 25 times its 30-day average. The relative strength index at 75 implies that the stock maybe overbought.
Out of the 31 analysts tracking the company, 19 maintain a ‘buy’ rating, six recommend a ‘hold’ and six suggest to ‘sell’ the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 10% over the next 12 months.
Source: Exchange filing