Thursday, November 20, 2008

Cummins India skids

Cummins India tumbled 5.02% to Rs 205.20 at 10:57 IST on BSE, after board approved sale of its power generation rental business.
The stock hit a high of Rs 217 and a low of Rs 200 so far during the day. The stock has a 52-week high of Rs 441 on 6 December 2007 and a 52-week low of Rs 190 on 18 November 2008.
The company's current equity is Rs 39.60 crore. Face value per share is Rs 2.
The current price of Rs 205.20 discounts the company's Q2 September 2008 annualized EPS of Rs 18.97, by a PE multiple of 10.82.
Cummins India's board has approved to sell its power generation rental business to Pune based Aggreko Energy Rental India, which rents generator sets across the country, for a total consideration not less than Rs 29 crore. The sale will enable the company to focus its attention on growing its core business.
Cummins India's net profit surged 41.3% to Rs 93.92 crore on 49.5% increase in net sales to Rs 789.82 crore in Q2 September 2008 over Q2 September 2007.
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.

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