Diesel engine maker Cummins India's stock price dipped today on profit booking.
On the Bombay Stock Exchange(BSE), the stock closed 4.36 per cent lower at Rs 58.10. The stock had gained nearly 20 per cent in the last three sessions after the company announced on Monday that it is planning to sell off an unviable plant in Pune and on rumours of a buy-back.
Trading volume at the counter also increased. Traded volume hit an all-time high of 23.11 lakh shares on Wednesday, the highest daily volumes in recent months.
More From This Section
Cummins India has been dogged by economic slowdown in recent years. For the nine months ended December 2001, its sales fell by 17 per cent to Rs 523.30 crore and net profit slipped by 25 per cent to Rs 54.71 crore.
A 51 per cent subsidiary of Cummins Engine, US, the company's diesel engines have applications covering a wide range of market segments such as power generation, construction and mining, oil fields, marine, locomotive and automotive. It derives a major chunk of its revenues from the power sector.
Recently, the company had diversified into automotive services business through its wholly owned subsidiary, Cummins Auto Services (CASL). CASL plans to offer vehicle maintenance and service facilities on major national highways of the country through service points at specific intervals.