Strong demand outlook likely to power Cummins India's growth

While valuation is not cheap, positive brokerage views to support stock

Engineering and capital goods major Cummins India (CIL) delivered a strong performance in the third quarter of the 2022-23 financial year (Q3FY23) with fairly upbeat guidance thrown in.

The Q3FY23 revenues of Rs 2,180 crore, coupled with operating profit of  Rs 410 crore and a net profit of Rs 360 crore beat estimates handsomely. Revenue was up 26 per cent year-on-year (YoY) and 12 per cent on a sequential basis.  Operating profit was up 52 per cent over the year ago quarter and 42 per cent sequentially. 

The bottomline was up 50 per cent YoY and up 42 per cent