Buy Cummins India; target of Rs 836: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Cummins India

Cummins' (KKC's) Q1FY19 PAT was up 10.2%YoY at Rs1.83bn which was in line with our estimates. Domestic sales were down 7% YoY due to high base of last years and supply constraints with few vendors, however KKC expect to recover lost sales during the course of the year. Exports sales were up 12% YoY led by strong bounce back in LHP sales (up 26% YoY). Margin beat was led by better mix.

Outlook

We remain positive on KKC, given its strong domestic outlook, gradual likely revival of export markets and strong history of delivering on cost rationalization and healthy cash flows. While we have increased our margin assumption, increase in tax rate has led to earning cut of ~3% for FY19/20. We maintain "BUY" with a revised TP of Rs836.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More