Sharekhan's research report on Cummins India
Cummins is well-poised for a formidable growth in both domestic and export markets through sustainable demand in traditional sectors and new offerings in alternate and green technologies. CPCB-IV plus norms from July 01, 2023 would bring structural transformation in the gensets industry through technological changes and price revision. Barring brief disruption post pre-buying in H1CY23, long-term implications are favorable for a leader like Cummins in terms of revenue and profitability. Cummins has a strong pedigree, industry-leading margins and we expect its earnings trajectory to sustain going forward. We expect revenue/PAT CAGR of ~18%/19% over FY22-25E.
Outlook
It has a healthy balance sheet with strong cash and investments of ~Rs. 2,000 crore. We reiterate Buy on the stock with a revised PT of Rs 1,755.
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.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!