Buy Cummins India; target of Rs 1252: Sharekhan

Sharekhan is bullish on Cummins India has recommended buy rating on the stock with a target price of Rs 1252 in its research report dated August 13, 2021.

Broker Research

August 23, 2021 / 13:25 IST

26 Aug, 2025 12:21

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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.

Outlook

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.

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