Cummins India slips 3% despite better Q3 nos; Nomura maintains buy

Macquarie has maintained outperform rating with a target at Rs 1,024 per share.


Share price of Cummins India slipped 3 percent intraday Thursday despite company posted better numbers for the third quarter ended December 2018.

The company reported 8.7 percent jump in its Q3 net profit at Rs 187.1 crore against Rs 172.2 crore in the same quarter last fiscal.

Revenue of the company was up 11 percent at Rs 1,503.8 crore against Rs 1,354.7 crore.

Operating profit or EBITDA rose 15 percent at Rs 226.7 crore, while margin at 15.1 percent.


Nomura has maintained buy call on Cummins India with target at Rs 890 per share.

The domestic execution is strong but exports weakened seasonally, while management is cautions on volatility arising from the upcoming general elections, it said.

Clarity on gross margin and export demand trend are the key to monitor, Nomura added.

Macquarie has maintained outperform rating with a target at Rs 1,024 per share.

According to firm, the company delivered in-line performance, with 11 percent topline growth. There is room for topline guidance to be revised upward and remain positive on the domestic growth opportunity.

At 11:00 hrs Cummins India was quoting at Rs 779.65, down Rs 21.50, or 2.68 percent on the BSE.

ADVANTAGEOUS SERVICES ARE AVAILABLE FOR CLIENTS ALONG WITH FULL TECHNICAL SUPPORT TO MAKE YOUR FINANCIAL TRADING EASIER. CLICK HERE TO SUBSCRIBE US FOR FREE >> Stock Option Market Tips

No comments:

Post a Comment

Designed with by Way2themes | Distributed by Blogspot Themes