Buy Cummins India; target of Rs 765: Sharekhan

Sharekhan is bullish on Cummins India has recommended buy rating on the stock with a target price of Rs 765 in its research report dated January 29, 2021.

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Sharekhan’s research report on Cummins India

The company reported yet another strong quarterly performance, led by better-than-expected OPM, driven by largely sustainable cost-reduction measures. The company is witnessing strong uptick in key segments such as power generation, construction, and mining, which are expected to do well going ahead. Management remains optimistic but has refrained from giving guidance for FY2021. The company continues to carry out new product initiatives, cost rationalising, and conserving cash. The company is expected to maintain its technologically driven market leadership across all business segments

Outlook

We retain Buy on Cummins India Limited (Cummins) with a revised PT of Rs. 765, as we see further room for upside considering strong earnings growth potential led by domestic economic revival.

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