Cummins India Q4 Results Review - Strong Performance; Retaining A Buy: Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.With Rs 23 billion/4.8 billion/5.1 billion Q4 revenue/Ebitda/profit after tax, up 20/49/62%, Cummins India Ltd. reported a strong Q4, roundly beating our expectations. Its Q4 Ebitda margin was 20.9%, adjusted for a one-time Rs600m benefit, including a management cross charge and reversal of advance tax paid. The gross margin was a strong 36%, to hold at ~35% ahead. Revenue from data centres, a key growth area, is near 10%. We revise our estimates to account for the higher (sustainable) Ebitda margin and export revival from H2 FY25. We raise our FY25e/26e earnings per share 1.4%/1.5% and value the stock on a sum-of-parts basis, with standalone PE at 42 times (from 36 times) and value of partners/Associates/rental property at Rs 939/share. Thus, we retain our Buy and raise our target prcie to Rs 4,166 (earlier Rs 3,538)..Risks: Competition catching up on CPCB 4+ transition faster than expected and undercutting in prices. The company cut prices to maintain its market share due to stiffer-than-anticipated competition. Also, exports being tepid for longer than expected could be a risk..Click on the attachment to read the full report:.Cummins, Brigade Enterprises, Lemon Tree, KNR Constructions, Ahluwalia Contracts Q4 Review: HDFC Securities .DISCLAIMERThis 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.

Cummins India Q4 Results Review - Strong Performance; Retaining A Buy: Anand Rathi

Revenue to grow twice the GDP growth rate

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