Emkay Global Financial Services has come out with its report on engineering & capital goods sector. The research firm has positive bias on Cummins with accumulate rating and target of Rs460.
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Accumulate Cummins, target Rs 460: Emkay
Emkay Global Financial Services has come out with its report on engineering & capital goods sector. The research firm has positive bias on Cummins with accumulate rating and target of Rs460.
Like this story, share it with millions of investors on M3
Accumulate Cummins, target Rs 460: Emkay
Emkay Global Financial Services has come out with its report on engineering & capital goods sector. The research firm has positive bias on Cummins with accumulate rating and target of Rs460.
Emkay Global Financial Services has come out with its report on engineering & capital goods sector. The research firm has positive bias on Cummins with accumulate rating and target of Rs460.
We did channel check to gauge competition and demand in Gensets market:
Competition has participated in Indian markets for the last 10 years, but progress is not impressive (gauging from 15% market share of 3 MNC players operating >10 years)
Competition has historically sold cheaper than Caterpillar and Cummins in India. Thus, it indicates that pricing is not the sole driver for business development in Gensets market
Competition has to spruce-up backend operations (service, distribution, manufacturing) before challenging the market leader. Otherwise, it lengthens time to succeed in the market
Strongly voice our positive stance on Cummins India and believe medium term earnings performance will not get impacted by developments in market place
Also, long-term changes, if any, are discounted in the derating in 1-year forward PER valuations. We retain our positive bias on Cummins with Accumulate rating and target of Rs460
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