Time period given by analyst is one year when Cummins India Ltd. price can reach defined target.
Cummins India Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 24971.56 Crore) operating in Engineering sector.
Cummins India Ltd. key Products/Revenue Segments include Engines, Sale of services, Other Operating Revenue, Export Incentives, Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1790.24 Crore, up 43.24 % from last quarter Total Income of Rs 1249.82 Crore and up 45.79 % from last year same quarter Total Income of Rs 1227.98 Crore. Company reported net profit after tax of Rs 210.39 Crore in latest quarter.
Investment Rationale
With the strong Q2 FY22 and a brighter outlook, the brokerage raises FY22/23 estimates. The recent fall in the stock price and revision of earnings lead us to upgrade the stock to a Buy, with a TP of Rs1,061. Risks: Delay in demand recovery, margins squeezed by keen competition, rise in commodity-prices.
Promoter/FII Holdings
Promoters held 51.0 per cent stake in the company as of 30-Jun-2021, while FIIs owned 11.97 per cent, DIIs 24.4 per cent.
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