Sharekhan has given Buy recommendation for Cummins India with a target price of Rs. 1252 in its research report issued on Aug 13, 2021
Sharekhan’s research report on Cummins India
We retain Buy on Cummins India (Cummins) with a revised PT of Rs. 1,183, given its strong performance during the quarter and introduction of new products, which will help increase market share. Cummins reported Q1FY2022 numbers slightly above our estimates with revenue/EBITDA/PAT at Rs. 1,184 crore (+138% y-o-y)/ Rs. 149 crore/Rs. 104 crore, respectively, owing to strong performance in the domestic and exports markets. The company is witnessing recovery in key segments such as power generation, construction, and mining, which are expected to do well going ahead. In exports, demand is expected to come back strongly, where North America, China, and India are expected to be the growth areas. Management remains optimistic but has refrained from giving guidance for FY2022.
The company continues to carry out new product initiatives, cost rationalising, and conserving cash. The company is expected to maintain its technologically driven market leadership across all business segments.