Hold Cummins India, says Lancelot D'Cunha

Lancelot D'Cunha of Sharyans Wealth Management told CNBC-TV18, "Cummins India management has guided that for the following year revenues would be flat however if you look at the performance of the company closely it has improved its operating margins mainly by focusing on cost efficiencies. The other trigger that could come in post April is that now it has become mandatory for energy saving engines for various automobiles and for generator sets which will result in additional demand for these engines going forward."

"The stock is trading at about 19 times its FY15 earnings. As and when we start seeing some policy decisions post elections take effect, that could give a spur to the industry and Cummins being one of the leading players in that field, we could see significant outperformance from this company when that happens. So I would look at holding on to the stock and even adding if it does correct a bit because if you hold on to it for about 12-18 months you can look at a share price of may be around Rs 520-550 levels," he added.