Cummins India Shares Jump 10% To Lifetime High After Q3 Profit Beats Estimates

Shares of Cummins India Ltd. jumped 10% to hit record high on Thursday after its third-quarter profit beat analysts' estimates.

The company's consolidated net profit rose 20.56% year-on-year to Rs 498.91 apiece in the quarter ended December 2023, according to an exchange filing. A Bloomberg poll of analysts' estimate pegged the net profit at Rs 359.15 crore.

• Revenue up 16.78% at Rs 2,509.79 crore. (Bloomberg estimate: Rs 2,281.45 crore).

• Ebitda up 35.5% at Rs 510.92 crore. (Bloomberg estimate: Rs 366.65 crore).

• Margin up 281 bps at 20.35% vs 17.54% (Bloomberg estimate: 16.10%).

• Net profit up 20.56% at Rs 498.91 crore. (Bloomberg estimate: Rs 359.15 crore).

Shares of the company rose as much as 10% to Rs 2,639.50 piece, its lifetime high level. It pared gains to trade 5.6% higher at Rs 2,534.90 apiece, as of 10:01 a.m. This compares to a 0.17% advance in the NSE Nifty 50 Index.

It has risen 72.75% in the past 12 months. Total traded volume so far in the day stood at 20 times its 30-day average. The relative strength index was at 84.59, indicating that the stock may be overbought.

Out of 27 analysts tracking the company, 11 maintain a 'buy' rating, six recommend a 'hold', and ten suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 26.5%.