Cummins India jumps 10% to hit record high on Q3 results, dividend announcement
The consensus recommendation from 22 analysts for the stock is a Hold. Out of the 22 analysts covering the stock, 12 have strong buy and buy ratings, five have strong sell and sell ratings, and five have hold ratings.
By Navdeep Singh, ETMarkets.com |
Agencies
Shares of auto ancillary company Cummins India jumped nearly 10% and hit a 52-week high of Rs 1,618 on Thursday's trade after the company reported robust earnings for the December quarter. Its profit after tax rose 66% year-on-year (YoY) to Rs 413.8 crore during Q3FY23, compared to Rs 249.5 crore during the same quarter of the previous financial year.
Total sales for the quarter at Rs 2,144 crore increased by 26% YoY and 12% QoQ. The earnings before interest, depreciation, tax, and amortization (EBITDA) margin improved by 327 bps to 18.9% from 15.63% in Q3FY22.
After the Q3 results, the company also declared a dividend of Rs 12 per share for the fiscal year 2022–2023.
In a BSE filing, Cummins India said that “the board of directors at their meeting held on February 08, 2023, declared an Interim Dividend of Rs 12/- per equity shares on 277,200,000 equity shares for the financial year 2022-23. The dividend warrants for the said interim dividend will be dispatched by March 06, 2023, and the dividend will be paid on March 8, 2023."
The company has fixed February 21, 2023, as the record date for the payment of the interim dividend.
On future outlook, the company said the Budget announced by the Indian government has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market. India will reach a significant milestone in the Power Generation segment which will transition from CPCB II to CPCB IV+ emission norms effective July 1, 2023, it added.
As per Trendlyne data, the highest target price for Cummins goes up to Rs 1,746, while the average target price estimate is Rs 1,356, a downside of 14% from the current market prices.
The consensus recommendation from 22 analysts for the stock is a Hold. Out of the 22 analysts covering the stock, 12 have strong buy and buy ratings, five have strong sell and sell ratings, and five have hold ratings.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Total sales for the quarter at Rs 2,144 crore increased by 26% YoY and 12% QoQ. The earnings before interest, depreciation, tax, and amortization (EBITDA) margin improved by 327 bps to 18.9% from 15.63% in Q3FY22.
After the Q3 results, the company also declared a dividend of Rs 12 per share for the fiscal year 2022–2023.
In a BSE filing, Cummins India said that “the board of directors at their meeting held on February 08, 2023, declared an Interim Dividend of Rs 12/- per equity shares on 277,200,000 equity shares for the financial year 2022-23. The dividend warrants for the said interim dividend will be dispatched by March 06, 2023, and the dividend will be paid on March 8, 2023."
The company has fixed February 21, 2023, as the record date for the payment of the interim dividend.
On future outlook, the company said the Budget announced by the Indian government has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market. India will reach a significant milestone in the Power Generation segment which will transition from CPCB II to CPCB IV+ emission norms effective July 1, 2023, it added.
ADVERTISEMENT
At 10.58 am, the scrip was trading 7.3% higher at Rs 1,583 on BSE. The stock has also surged over 70% in the last year.As per Trendlyne data, the highest target price for Cummins goes up to Rs 1,746, while the average target price estimate is Rs 1,356, a downside of 14% from the current market prices.
The consensus recommendation from 22 analysts for the stock is a Hold. Out of the 22 analysts covering the stock, 12 have strong buy and buy ratings, five have strong sell and sell ratings, and five have hold ratings.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
