Buy Cummins India; target of Rs 4500: Mirae Asset Sharekhan

Mirae Asset Sharekhan's research report on Cummins India

Cummins is experiencing a broad-based demand revival in powergen segment from across sectors such as Real estate, manufacturing, hospitals, datacenters, etc. Demand is picking up with price stabilization. High-HP products has seen a steady demand from Data centers, hospitals etc. Cummins emerging as a clear leader owing to early product launches, strong customer adoption, and aftermarket support. While CPCB IV+ volumes are currently tracking at 80–85% of CPCB-II levels, prices have largely held firm.

Outlook

We expect a 16%/16% CAGR in revenue/PAT (FY25-27E). Given the domestic demand uptick due to adoption of CPCB-IV emission norms and gradual recovery in export business, we maintain a Buy rating with a revised PT of Rs 4,500.

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