Cummins India Share: Q3 Result, Net Jumps 26%, Shareholders to Receive Rs 18 Dividend, BUY

Cummins India Share: Q3 Result, Net Jumps 26%, Shareholders to Receive Rs 18 Dividend, BUY

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  • Cummins India is a leading player in the Compressors, pumps, and diesel engine industry. The company’s shares saw a significant 8.36% rally on February 8, 2024.
    • The company reported a 26.32% YoY increase in its standalone net profit, reaching Rs 454.92 crore.
    • The stock hit a 52-week high during the trading session, and Cummins India declared an interim dividend of Rs 18 per share.
    • The company’s market capitalization reached Rs 71,814.20 crore.
    • Cummins India shares have delivered a remarkable return of 75% to investors over the past year.
    • The company announced its interim dividend on February 7, 2024, equivalent to 900% of 277,200,000 equity shares.
    • Cummins India’s Q3 results were attributed to strong demand in both domestic and global markets.
    • The company’s total expenses for the December 2023 quarter were declared at Rs 2044.32 crore, compared to Rs 1805.33 crore in the same quarter of the previous year.
    • Cummins India’s exceptional Q3 performance and commitment to shareholder value make it an attractive proposition for investors seeking growth and stability in their portfolios.

About Cummins India Limited

Cummins India Share: Q3 Result, Net Jumps 26%, Shareholders to Receive Rs 18 Dividend, BUY
  • Cummins India Limited was established in 1962 and is the leading manufacturer of diesel and natural gas engines in India.
    • The company operates through three business units: engines, power systems, and distribution.
    • The company manufactures engines for diverse applications in the transportation and commercial equipment sectors.
    • The company covers a broad horsepower spectrum from 125 to 400 HP and also serves the off-highway commercial equipment industry.
    • In the power systems business, the company designs and manufactures engines with a horsepower range of 700 HP to 4500 HP.
    • The company provides engines for critical sectors such as marine, railways, defense, and mining.

    • The company develops integrated generator sets with a capacity ranging from 7.5 kVA to 3750 kVA.
    • The company is known for its best-in-class technology, optimal footprint, enhanced fuel efficiency, and smart offerings.

Management of Cummins India

NameDesignation
Steven M ChapmanChairman
Ashwath RamManaging Director
Donald JacksonNon Executive Director
Bonnie Jean FetchNon Executive Director
Nasser M MunjeeIndependent Director
RekhaIndependent Director
Jennifer Mary BushNon Executive Director
Rajeev BakshiIndependent Director
Rama BijapurkarIndependent Director
Lira GoswamiIndependent Director

Registered Address of Cummins India

Cummins India Office Campus,
Tower A, 5th Floor, ,Survey No. 21, Balewadi,
Pune
Maharashtra
411045

Tel: 020-67067000
Fax: 020-67067015
Email: cil.investors@cummins.com
Website: http://www.cumminsindia.com

Industry Type

SectorCapital Goods
Sub SectorCompressors, Pumps & Diesel Engines
ClassificationLargecap
Industry NameEngines
BSE Scrip Code500480
NSE Scrip CodeCUMMINSIND
ISININE298A01020

Pros of Cummins India

The company has reduced debt.
The company is almost debt free.
The company has been maintaining a healthy dividend payout of 62.2%

Cons of Cummins India

Stock is trading at 12.7 times its book value
The company has delivered a poor sales growth of 8.79% over past five years.

Historical Performance

YearsLowHigh
1 Year1444.602648.00
3 Years746.552648.00
5 Years280.002648.00

Investment Returns

PeriodReturns
1 year75.35%
2 Years184.77%
3 Years226.32%
4 Years372.88%
5 Years244.10%

Dividend History of Cummins India

Announcement DateEx-DateDividend TypeDividend (%)Dividend (Rs)
24-05-202326-07-2023Final65013
08-02-202321-02-2023Interim60012
26-05-202202-08-2022Final52510.5
10-02-202221-02-2022Interim4008
26-05-202104-08-2021Final4008
28-01-202109-02-2021Interim3507
17-06-202017-08-2020Final3507
28-01-202007-02-2020Interim3507
22-05-201931-07-2019Final50010
06-02-201915-02-2019Interim3507
24-05-201802-08-2018Final50010
01-02-201815-02-2018Interim2505
18-05-201727-07-2017Final4509
01-02-201709-02-2017Interim2505
25-05-201628-07-2016Final4509
02-02-201611-02-2016Interim2505
28-05-201530-07-2015Final4509
27-08-201418-09-2014Interim2505
22-05-201424-07-2014Final4008
16-01-201413-02-2014Interim2505
10-05-201325-07-2013Final4008
31-01-201311-02-2013Interim2505
15-05-201226-07-2012Final3006
09-02-201221-02-2012Interim2505
31-05-201128-07-2011Final4008
01-02-201110-02-2011Interim3507
31-05-201005-08-2010Final3006
04-12-200914-12-2009Interim3006
27-05-200923-07-2009Final1302.6
19-01-200903-02-2009Interim2004
01-12-200815-12-2008Interim1202.4
22-05-200817-07-2008Final1302.6
30-01-200814-02-2008Interim1002
31-05-200719-07-2007Final1002
25-01-200708-02-2007Interim1002
08-06-200617-07-2006Final1002
31-01-200602-03-2006Interim1002
03-06-200515-07-2005Final1004
28-01-200511-02-2005Interim1002
02-06-200416-07-2004Final1002
05-11-200305-12-2003Interim1002
25-03-200323-05-2003Interim2004
11-06-200203-09-2002Final750
11-06-200109-07-2001Final650

Chart

Cummins India Share: Q3 Result, Net Jumps 26%, Shareholders to Receive Rs 18 Dividend, BUY
Cummins India Share: Q3 Result, Net Jumps 26%, Shareholders to Receive Rs 18 Dividend, BUY

Fundamental Analysis of Cummins India

MetricValue
Market Cap₹ 71,693 Cr.
Current Price₹ 2,585
High / Low₹ 2,649 / 1,481
Stock P/E50.5
Book Value₹ 204
Dividend Yield0.97%
ROCE26.8%
ROE21.6%
Face Value₹ 2.00
Pledged Percentage0.00%
EV/EBITDA34.6
Change in Prom Hold0.00%
Debt to Equity0.05
Return on Equity21.6%
EPS₹ 51.1
Price to Book Value12.7
Dividend Yield0.97%
Debt₹ 271 Cr.

Peer Comparison

S.No.NameP/EMar Cap Rs.Cr.Div Yld %ROCE %
1Cummins India50.53716930.9726.82
2Kirloskar Oil32.211930.90.6113.44
3Greaves Cotton126.93938.680.539.09
4Swaraj Engines21.052897.243.8655.22

Shareholding of Cummins India

HoldersMar-20Mar-21Mar-22Mar-23Dec-23
Promoters 51.00%51.00%51.00%51.00%51.00%
FIIs 7.46%10.92%10.52%13.99%16.51%
DIIs 30.09%25.25%25.16%23.61%23.36%
Public 11.18%11.57%13.12%11.20%8.93%
Govt.0.27%1.26%0.20%0.20%0.20%
Others

Last 5 Years’ Sales (In Cr.)

March 2019March 2020March 2021March 2022March 2023
5,6595,1584,3296,1407,744

Last 5 Years’ Net Profit (In Cr.)

March 2019March 2020March 2021March 2022March 2023
7236296188871,130

Balance Sheet of Cummins India (In Cr.)

 Mar-20Mar-21Mar-22Mar-23Sep-23
Equity Capital5555555555
Reserves4,1204,3514,7975,3135,596
Borrowings 50433412373271
Other Liabilities 1,2751,2571,5401,7711,943
Total Liabilities5,9545,6976,8057,5127,865
Fixed Assets 2,2642,1852,2042,2222,301
CWIP80128614149
Investments8243696151,0851,330
Other Assets 2,7863,0153,9254,1644,186
Total Assets5,9545,6976,8057,5127,865

Compounded Sales Growth

10 Years:5%
5 Years:9%
3 Years:15%
TTM:17%

Compounded Profit Growth

10 Years:5%
5 Years:11%
3 Years:21%
TTM:40%

CAGR

10 Years:19%
5 Years:28%
3 Years:48%
1 Year:75%

Return on Equity

10 Years:19%
5 Years:17%
3 Years:18%
Last Year:22%

Cash Flow (In Cr.)

ParticularsMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Operating Activities550599788707811
Investing Activities16-20225-57487
Financing Activities-523-411-872-77-684
Net Cash Flow43-14-6056214

Revenue and Profit Trend

Financial YearRevenue GrowthProfit Growth
FY 2022-2326.12%27.43%
FY 2021-2241.84%43.5%
FY 2020-21-16.06%-1.82%
FY 2019-20-8.86%-12.9%
FY 2018-1911.34%1.99%

Also Read – Tata’s Profit Powerhouse: Stock Surges 20%, Net Profit Soars 124%, Trent Share Price Hit Upper Circuit

Conclusion

This is a comprehensive guide to Cummins India. The above-mentioned information and data are as of February 08, 2024. These figures and projections are based on our research, analysis, company fundamentals and history, experiences, and numerous technical analyses. In addition, we have discussed in depth the share’s prospects and growth potential. Hopefully, these details will be useful in your future investments.

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Disclaimer: Dear Readers, we are not authorized by SEBI (Securities and Exchange Board of India). The information provided above is for educational purposes and should not be considered financial advice or stock recommendations. Share price predictions are for reference purposes and are based on positive market indicators. The analysis does not account for uncertainties about future or current market conditions. The author, brokerage firm, or Finreturns.com are not liable for losses resulting from decisions. Finreturns.com advises consulting with certified experts before investment decisions.

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