'Buy' Cummins India Says Motilal Oswal, Sees Upto 25% Upside, Here's Why

Motilal Oswal Report

Stocks to Buy: The stock is currently trading at 38.7x/32.9x on FY26E/FY27E EPS. We maintain our target price of Rs 4,300, based on 45x two-year forward EPS. Reiterate Buy rating on the stock.

Our recent interaction with the management of Cummins India Ltd. reinstated that demand has continued to remain strong for the powergen segment from key user industries. Additionally, other segments, such as distribution and industrial, continue to benefit from initiatives taken over the years to enhance customer reach and the overall positive macro environment.

The company has transitioned well in the CPCB 4+ norm shift and expects the market to normalize in the coming quarters. With cost efficiencies and value addition in products, the company aims to maintain margins at similar levels as in H1 FY25.

We continue to maintain our positive stance on the company and reiterate Buy.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.