Cummins India: No re-rating on the cards
Short term pain not adequately priced in for Cummins' valuations
May 31, 2021 / 01:10 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Most engineering companies now feel that economic output will be impacted in the first quarter of fiscal 2021 and, possibly with the vaccination drive picking up and Covid-19 cases declining, commercial activities can start improving from the second quarter.
Cummins India, which caters to many core domestic sectors and industries, shares similar views. It thus expects the overall impact to be very marginal. What further lends confidence in the case of Cummins is that the company’s exports, which so far...