40% drop from alltime excessive, now 2-2 brokerage recommendation to purchase, quarterly outcomes are unbelievable – INA NEWS
Cummins India Share Worth: Cummins India’s third quarter outcomes had been higher than the market expectations. After this, the opinion of brokerage corporations concerning this inventory appears to be altering. Many analysts have suggested to purchase this inventory. Brokerage agency Nuvama has elevated the score of this inventory from ‘Scale back’ and has mounted its goal worth ₹ 3,400 per share. That is about 18.5% larger than the present worth of this inventory, Rs 2,869.65.
Nuwama says that Cummins India shares have fallen by about 40% from its highest stage of Rs 4,171.90, however the firm has proven stability because of robust working margin and rising demand. On this foundation, 4% development within the firm’s earnings (EPS) throughout FY25E-27e has been estimated. On the similar time, there’s a chance of development of 15% CAGR within the firm’s gross sales and a rise of 19% in working revenue margin.
HSBC opinion
HSBC has additionally beneficial purchases in Cummins Inzia’s inventory. Nonetheless, he has decreased his goal worth for this inventory from ₹ 4,200 to ₹ 3,500. HSBC stated the corporate’s December quarter earnings had been higher than estimates, however the margin noticed some weak point.
Quarterly outcomes
Cummins India recorded a standalone web revenue of ₹ 514 crore within the December quarter, which was ₹ 455 crore in the identical interval final yr, ie 13% development. In response to analysts estimates, the revenue was anticipated to be ₹ 485 crore.
The corporate’s standalone income rose by 21.8 p.c to Rs 3,086 crore in December in December. The corporate’s working revenue (Ebitda) elevated by 11.5 per cent to Rs 600 crore as in comparison with the earlier yr. Nonetheless, the Ebitda margin got here all the way down to 19.4 per cent, which was 21.2 per cent in the identical quarter final yr.
Interim dividend declared
The Firm India has introduced to present interim dividend to shareholders together with quarterly outcomes. Cummins Board has declared an interim dividend of ₹ 18 (900%) per share for FY 2024-25. Its file date has been mounted on 14 February and might be paid by 3 March.
In the meantime, Cummins India shares closed at Rs 2,886 with a rise of 0.49 per cent on NSE on Monday 10 February right this moment. To this point this yr, the corporate’s shares have fallen by about 10.66 p.c.
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40% drop from alltime excessive, now 2-2 brokerage recommendation to purchase, quarterly outcomes are unbelievable
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