Cummins Shares Hit Nearly One-Month Low After Parent Suspends Guidance

Shares of Cummins India Ltd. fell nearly 8% to hit one-month low after the company's parent Cummins Inc. reported its results for the quarter ended March and suspended its guidance for the full year.

Due to ongoing global uncertainty, the company on Monday said it is not providing an outlook for revenue or profitability at this time. The parent of the producer of diesel and natural gas engines acknowledged that the outlook for the remainder of the year remains unclear but expects to reinstate its forecast when conditions become more stable.

Cummins Global in the earnings for the first quarter of 2025, reported a 3% decrease in net sales, totalling $8,174 million. It added that the sales in North America declined by 1%, while international revenues fell by 5%, primarily due to reduced demand in Latin America and the Asia Pacific region.

Segment-wise, the Engine segment experienced a 5% drop in sales, and the Components segment saw a significant decline of 20%. In contrast, the Distribution segment recorded a 15% increase in sales, the Power Systems segment grew by 19%, and the Accelera segment rose by 11%.

Cummins India Share Price Declines

The shares of Cummins India fell as much as 7.80% to Rs 2,711 apiece, the lowest level since April 9. It pared losses to trade 1.16% lower at Rs 2,787.20 apiece, as of 10:16 a.m. This compares to a 0.32% decline in the NSE Nifty 50 Index.

It has fallen 18.32% in the last 12 months and 14.94% year-to-date. Total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index was at 41.8.

Out of 28 analysts tracking the company, 16 maintain a 'buy' rating, six recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 21.1%.