Enam Securities has maintained outperformer rating on Cummins India with target price of Rs 585, implying potential upside of 40% in its report on December 05, 2007. "On domestic front, CIL expects demand growth of 25% to continue driven by both powergen and industrial segments. For exports market, volume growth of approx 20% to be maintained driven by new product approval and capacity expansion. Despite INR appreciation, overall margins are likely to be maintained driven by domestic market. CIL plans to incur Rs 5 billion towards capex in the all its business segment to gear itself to meet demand. We are maintaining our FY08 and FY09 earnings estimates and are introducing FY10 earnings estimate of Rs 26.6. Maintain sector Outperformerwith a revised target of Rs 585," according to ENAM research report.
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