Cummins India Shares Jump 7% After Q4 FY25 Results: Why Investors Are Optimistic
Cummins India Limited’s shares rose sharply on Thursday, May 27, 2025. The stock went up over 7.3% during the day. This came after the company announced its Q4 FY25 earnings.
Though net profit fell slightly from last year, steady revenue growth and a positive outlook boosted investor confidence. This pushed the stock higher on Dalal Street.
At 1:19 PM, Cummins India was trading at ₹3,179.20 on the BSE. This was a 6.78% rise. Meanwhile, the BSE Sensex was nearly flat, down 0.02%. The strong stock move surprised many because the earnings report was mixed.
Q4 FY25 Results: Key Facts
Cummins India, known for diesel and gas engines, reported results for the quarter ending March 31, 2025:
- Revenue: ₹2,470.38 crore (up 6.5% from ₹2,319.02 crore last year)
- Net Profit: ₹529.5 crore (down 2% from ₹538.86 crore last year)
Despite a small profit drop, the company reached ₹10,000 crore in yearly revenue. This is a major milestone. The company also kept profit margins steady, despite tough economic conditions.
Stock Performance and Market Reaction
Strong revenue growth and positive management comments lifted investor interest. On Thursday, the stock hit an intraday high of ₹3,195.
Here are some important numbers:
- 52-week high: ₹4,169.50
- 52-week low: ₹2,594.75
- Market cap: ₹88,127.42 crore
Still, the stock has dropped 22% in the past year. Meanwhile, the Sensex rose 9%. Thursday’s rise partly shows bargain buying and growing faith in the company.
Management’s View
Shveta Arya, Managing Director, said:
“Geopolitical tensions have eased, but global tax and trade rules remain uncertain. Still, our focus on steady, profitable growth, backed by strong finances and technology, keeps us well-positioned.”
She pointed out key strengths:
- Latest global technologies
- Wide product range
- Strong manufacturing
- Financial strength
Cummins aims for steady, profitable growth despite global challenges.
About Cummins India
Cummins India is a major power solutions provider in India. It serves sectors like:
- Power generation
- Aftermarket services
- Exports
The company has:
- Five advanced manufacturing plants
- Assembly and distribution centers
- Over 480 customer service points
This network ensures quick support. It makes Cummins a key player in India’s energy and infrastructure.
Why Investors Are Buying
Here’s why the stock jumped on Thursday:
- Revenue grew 6.5% despite global challenges
- The company crossed ₹10,000 crore in annual revenue
- Profit margins stayed strong despite rising costs
- Positive management outlook encouraged investors
- The stock looks cheap after a 22% fall in the past year
Cummins India’s results show the company is strong and ready to grow. The recent stock rise reflects hope in its future.
As India grows infrastructure and clean energy, companies like Cummins will play a big role. Long-term investors should watch Cummins closely in the coming months.
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