Book some profits in Cummins India: Sanjeev Zarbade

Sanjeev Zarbade, Capital Goods Analyst at Kotak Securities told CNBC-TV18, "Cummins India has revised its guidance downwards. The numbers that the company reported in the third quarter were largely in line with our expectations, but the margins were quite strong in the quarter. It remains to be seen whether these kind of margins are sustainable."

"At the same time we have seen that the southern region which was a main demand driver for the last one or two years to a certain extent there is a possibility that the demand from that region starts tapering off and hence there has been some moderation in the revenue outlook. At the current valuation of around 18 times FY15 we see very limited upside from these levels and we are recommending taking some profits home at this point of time," he added.