Cummins India shares rally 5% on strong Q3 print, Rs 18 interim dividend

Shares of Cummins India surged as much as 5.4% on Thursday to Rs 3,075.95 on the BSE after the power solutions technology provider reported a 12% year-over-year (YoY) rise in its net profit for the third quarter ended December to Rs 558 crore and declared an interim dividend of Rs 18 per share.

The company, a unit of US-based truck engine maker Cummins Inc., said its profit climbed from Rs 499 crore a year earlier, driven by steady demand for its power generators. Revenue for the third quarter rose 22% YoY to Rs 3,052 crore.

The board of directors declared an interim dividend of Rs 18 per equity share, or 900% on the face value of Rs 2 each, for the financial year 2024-25. The record date has been set for February 14, with dividend payments expected by March 3.


Also read | Time to buy the dip? Stock market indicates oversold level

Cummins, best known for its truck engines, derives its entire revenue in India from sales of engines and power generators. The segment’s resilience helped offset broader market concerns, with shares closing about 3% higher on Wednesday after the parent company projected double-digit revenue growth for its Indian unit in 2024.

The stock has gained over 25% in the past year, though it remains down more than 15% in the last six months.

The average consensus target price of Cummins India shares is Rs 3,591 per share, as per Trendlyne data. Out of the 26 analysts covering the stock, 12 recommend to “buy”, five suggest “hold” and nine recommend to “sell”.

Also read | Can Asian Paints shares tumble to Rs 2,000? Brokerages weigh in

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)