Buy Cummins India, target price Rs 1590: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Cummins India with a target price of Rs 1590. The current market price of Cummins India is Rs 1501.4. Motilal Oswal Financial Services recommended to keep stop loss at Rs 1490.

Cummins India, incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 41796.22 Crore) operating in Engineering sector.

Cummins India key Products/Revenue Segments include Engines, Sale of services, Other Operating Revenue, Export Incentives and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2026.26 Crore, up 14.95 % from last quarter Total Income of Rs 1762.79 Crore and up 13.18 % from last year same quarter Total Income of Rs 1790.24 Crore. Company has reported net profit after tax of Rs 234.69 Crore in latest quarter.

The company’s top management includes Mr.Steven M Chapman, Mr.Ashwath Ram, Mr.Donald Jackson, Mr.Norbert Nusterer, Mr.Rajeev Bakshi, Mr.Nasser M Munjee, Ms.Rama Bijapurkar, Mr.Priya S Dasgupta. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 30-09-2022, the company has a total of 28 Crore shares outstanding.

Investment Rationale
The counter has been forming higher lows from the last seven months and price-volume surged on weekly frame.

Promoter/FII Holdings
Promoters held 51 per cent stake in the company as of 30-Sep-2022, while FIIs owned 10.35 per cent, DIIs 26.52 per cent.