Buy Cummins India; target of Rs 1016: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on Cummins India

The sudden exit of the Chairman & Managing Director is unlikely to have any impact on KKC given the strong management line up at KKC. Mr. Patrick Ward, currently the Vice President and CFO of Cummins Inc. will be the interim MD. A new MD is expected to be appointed soon.Exports have bottomed out (in line with the 2Q concall commentary). The fall in exports at 17% in 2QFY18 was rather steep juxtaposed against a 3/2/3% YoY fall in 1QFY18/FY17/FY16.

Outlook

We maintain our estimates of tepid revenue CAGR of 8% over FY17-20E. With the recent decline in the stock price of KKC, we upgrade KKC to a BUY with a TP of Rs 1,016/sh (31x Dec-19 EPS).For all recommendations report, click here

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