Share News: Chairman of a company with a market cap of Rs 50 thousand crore suddenly resigns, shares fall 11% in 3 months

Share News: The stock has fallen 11 percent in three months. Last week UBS advised to sell the stock.

This company is Cummins India. The company said in the information given to the exchange that it has announced the resignation of Steven Chapman from the post of Chairman of the Cummins India Board and Non-Executive Non-Independent Director. However, he has given personal reasons behind his resignation.

What does Cummins India do: Formed in 1962, Cummins India is the largest unit of Cummins in India. Cummins India Limited manufactures engines running on diesel and natural gas.

According to market experts, management has a direct impact on the performance of a company. In such a situation, the effect of the change is visible on the stock but it is usually of short duration only.

The medium and long term impact on the stock depends on what the new management’s future strategy is. This is the reason why with change the management tries to clear the future strategy soon. Click on the link for BSE notification

Brokerage house UBS advises to sell shares-Last week, the stock was under pressure after UBS Securities gave ‘Sell’ rating on the stock of the engine manufacturing company.

UBS has set a target of Rs 1,350 per share considering the possibility of a fall in the stock from the current price level.

It has been said in the report that there are concerns regarding the company’s exports. In such a situation, the company’s rating may be affected.

Promoters hold 51 percent stake in the company. There has been no change in this since the last 5 quarters. At the same time, the share of FIIs i.e. foreign institutional investors has increased. In June 2022, the stake was 10.35 percent. It will increase to 10.37 percent in September 2022. The share will increase to 12.2 percent in December 2022, 13.99 percent in March 2023, and 14.37 percent in June 2023.

Disclaimer, The advice or views given on CNBC TV18 Hindi are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Before investing, you must take advice from your financial advisor i.e. certified expert.

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