900% Dividend: Stock jumps 6% after reporting Q3 results & announcing dividend

A leading power solutions and engine manufacturing giant has delivered robust financial performance, showcasing impressive year-over-year growth in both revenue and profit margins. The company’s latest announcement reveals a striking 900% interim dividend on face value. 

Share Price Movement 

The share price of Cummins India Limited went up 5.7 percent to Rs. 3,090 per share on Thursday, an increase from its previous close of Rs. 2,921.15 per share. The market capitalisation now stands at approximately Rs. 82,516 crore as of February 06, 2025.

Financial Highlights

In Q3FY25, the company reported revenue of Rs. 3,086 crore, reflecting a 21.8% YoY growth from Rs. 2,534 crore in Q3FY24 and a 23.8% QoQ increase from Rs. 2,492 crore in Q2FY25. Profit stood at Rs. 514 crore, marking a 13% YoY rise from Rs. 455 crore and a 14% QoQ growth from Rs. 451 crore in Q2FY25, indicating strong sequential and annual performance.

Dividend Declared

The Board of Directors of Cummins India has approved and declared an interim dividend of Rs. 18 (900%) per equity share for the financial year 2024-25 on a face value of Rs. 2 each. 

The record date for determining entitlement to the interim dividend is set for Friday, February 14, 2025. The interim dividend will be paid by March 03, 2025.

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Competitors 

Cummins India competes with Greaves Cotton, Kirloskar Industries, Kirloskar Oil Engines, Swaraj Engines, Thermax, Jyoti CNC Automation, and GE Vernova T&D India.

Cummins India is currently trading at a P/E of  47.92, which is above the industry P/E of 24.74.

Market Outlook

The alternative fuel vehicle market is set for rapid growth, projected to expand from $564.7 million in 2024 to $4,532.4 million by 2031 at a 34.6% CAGR. This surge is driven by rising environmental awareness, government policies promoting clean energy, and growing consumer demand for sustainable mobility.

Automakers are heavily investing in electric hybrids and fuel cell technologies, accelerating the shift toward greener transportation. With increasing regulatory support, the market is poised for significant expansion in the coming years.

Written By Fazal Ul Vahab C H

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