Cummins India shares rise 7% post Q1 earnings, check details

Shares of Cummins India rose 7% today after the power solutions technology provider reported a 33% year-on-year (YoY) jump in standalone net profit for the first quarter. Cummins India’s net profit climbed to Rs 419.8 crore in the first quarter against a net profit of Rs 315.7 crore in the June 2023 quarter.  

Cummins India touched an intraday high of Rs 3,761, rising 6.84% against the previous close of Rs 3,520. Cummins India stock is trading higher than the 5 day, 10 day, 100 day, 150 day, 200 day but lower than the 20 day 30 day and 50 day moving averages.

The stock has gained 116% in one year and risen 92.39% since the beginning of this year.

Total 0.34 lakh shares changed hands amounting to turnover of Rs 12.54 crore on BSE.

Market cap of the firm rose to Rs 1.04 lakh crore. The stock hit 52-week high of Rs 4169.50 on June 25, 2024 and 52-week low of Rs 1590.30 on October 9, 2023.

Revenue from operations rose 4.3% to Rs 2,304.2 crore in Q1 against Rs 2,208.7 crore in the corresponding quarter of the preceding fiscal.

Standalone EBITDA rose 37.2% to Rs 467.4 crore in the first quarter against Rs 340.6 crore in the corresponding period of the previous fiscal. EBITDA margin climbed to 20.3% in the reporting quarter against 15.4% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Japanese brokerage Nomura has maintained its neutral rating on the stock with a price target of Rs  3,470. It said earnings beat were led by strong margins. Gross margins at 37.8% were a positive surprise.

The earnings were announced after market hours on Tuesday.

Cummins India is a leading producer of diesel and natural gas engines. It belongs to the auto ancillary industry. It has a country-wide network of 20 dealerships with over 450 service points that provides products, services, and after-market solutions for the uptime of Cummins equipment and engines to customers in India, Nepal, and Bhutan.