Despite market ups and downs, Cummins India shares have shown a strong upward trend. Over the last 24 months, the stock only saw minor losses in five months. During this period, the share price soared from ₹1,030 to ₹3,834, marking a massive 272% gain. In 2024 alone, the stock jumped 95.25%, the biggest yearly gain since 2009.
From its 2020 low of ₹280 per share, Cummins India has skyrocketed by 1270%. On May 18, it hit a new all-time high of ₹3,895 per share.
Cummins India, a top manufacturer of diesel and natural gas engines, operates in three segments: engines, power systems, and distribution. The company continues to see strong demand across all segments. The power generation segment benefits from sectors like data centers, commercial real estate, residential projects, infrastructure, and manufacturing.
Analysts believe this demand will continue, driven by increased data center capacity and new residential and commercial projects over the past three years. The industrial segment benefits from government infrastructure projects, while the distribution segment sees growth from more service offerings, better market penetration, and reconditioning services.
In 3QFY24, Cummins India sold 3,000 CPCB IV+ gensets in regions with strict emission norms. With new emission standards coming in July 2024, analysts expect better pricing for these products.
In April, Nomura, a Japanese brokerage firm, expressed optimism about India’s capital goods companies, including Cummins India. They noted that both government and private investments are boosting earnings.
For the quarter ending in December, Cummins India reported strong financial results, beating analysts’ expectations. The profit after tax (PAT) jumped 26% year-on-year to ₹455 crore. Revenue from operations reached ₹2,502 crore, a 17% increase from the same quarter last year and a 34% rise from the previous quarter.
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