We should see some good action in Cummins India over a period of time, says Ganesh Shanbhag, CEO, SMS Financial Services.
Shanbhag told CNBC-TV18, "Cummins India is a 51% subsidiary of Cummins US, which has been a very liberal distributor all throughout and incidentally they are celebrating their 60th year this year and typically the company pays out nearly 60% of its profits as dividend. India is the outsourcing hub for them. They are manufacturing around 18,000 diesel engines. The increase in capacity is around 20% over the next three years, CAGR growth expected. I think we should see some good action in this counter over a period of time." The company's trailing 12-month (TTM) EPS was at Rs 28.55 per share. (Dec, 2010). The stock's price-to-earnings (P/E) ratio was 24.35. The latest book value of the company is Rs 78.84 per share. At current value, the price-to-book value of the company was 8.82. The dividend yield of the company was 1.73%.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
