Near term demand, price stability concerns for Cummins India stock

Brokerages upbeat on long-term prospects after company's strong Q3 results

Cummins India posted better-than-expected results in the December quarter (Q3FY25). The company, which makes diesel and alternative fuel engines, reported a 22 per cent jump in revenues for the quarter. In addition to the domestic performance, exports rebounded after many quarters, riding on growth in select regions. While brokerages are positive on the long-term prospects, some are cautious in the near term, given lower government capex, pricing pressures, and lack of uniform export demand.

 

The top line performance was aided by higher sales in the power generation or powergen segment, which account for more than half of its revenues. The