Cummins India Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 24828.80 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
Cummins India delivered another strong quarter with 49% YoY growth in revenues to Rs17.27bn led by 68% YoY surge in domestic segment to Rs12.5bn. Exports grew by a modest 10% to Rs4.3bn as various geographies started recovering from the pandemic impact. Amid demand pick-up, the likelihood of stronger emission norms bodes well for the company. However, supply chain challenges coupled with elevated material costs hamper near-term visibility. Company’s sustained efforts toward better product efficiency with focus on reducing emissions drives the long-term growth story. Maintain ADD with a target price of Rs995.
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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