ICICI Securities's research report on Cummins India
Cummins reported a robust Q3 revenue print; margin remains off its peak levels seen in H2FY24 (though still robust). A sequential revenue jump of 24% was largely driven by the HHP segment of the domestic power gen business (74% contribution to incremental revenue QoQ). While the distribution segment’s revenue growth slowed, the industrial segment saw a sharp acceleration led by mining, railway and marine (new product launches in marine – engines and railways – hotel load converter likely contributed). Exports continue to witness sequential improvement on a low base with the LHP segment showing better sequential recovery in the last three quarters.
Outlook
We upgrade Cummins to HOLD. Rolling over valuations to FY27E, our SoTP-based revised TP stands at INR 2,900. We cut FY26E EPS by 4%. Cummins maintains double-digit FY25 revenue growth guidance.
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