Buy Cummins India; target of Rs 1430: Sharekhan

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

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26 Aug, 2025 12:21

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Cummins reported strong standalone revenues with 42% y-o-y growth driven by both domestic and export markets. Adjusted net profit grew by ~60% y-o-y. The demand outlook is robust in both domestic and exports driven by demand from data centers, mining, healthcare, realty and infrastructure. The Company could achieve double digit volume growth given the promising demand. Cummins has a strong pedigree, healthy balance sheet, constantly evolving product portfolio to meet the changing emission norms and improving earnings trajectory. We expect revenue/PAT CAGR of ~19%/21% over FY22-24E.

We reiterate Buy on Cummins India (Cummins) with a revised PT of Rs 1,430 given its robust performance during the quarter and bullish outlook.