Cummins India gains on expansion buzz

Cummins India gained 1.42% to Rs 317 at 9:55 IST on BSE on reports the company plans to invest Rs 1200 crore over the next three to four years to set up three factories in Phaltan near Pune, Maharashtra.

The stock hit a high of Rs 317 and a low of Rs 317 so far during the day. The stock had a 52-week high of Rs 462.80 on 27 September 2007 and a 52-week low of Rs 255 on 13 April 2007.

The company’s current equity is Rs 39.60 crore. Face value per share is Rs 2.

The current price of Rs 317 discounts its Q3 December 2007 EPS of Rs 15.07 with a PE multiple of 21.04.

Cummins India’s net profit rose 18.6% to Rs 74.61 crore on 23.7% growth in net sales to Rs 590.23 crore in Q3 December 2007 over Q3 December 2006.

As per recent reports, Cummins India has acquired 150 acres in Phaltan for this project.

Cummins India is engaged in manufacturing and selling internal combustion engines, diesel generating sets and special purpose machines. The products of the engine business segment are used for various applications such as power generation, construction, compressor, mining, marine, locomotive and fire fighting.