Cummins India Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 27211.34 Crore) operating in Engineering sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1249.82 Crore, down -4.94 % from last quarter Total Income of Rs 1314.78 Crore and up 108.47 % from last year same quarter Total Income of Rs 599.53 Crore. Company reported net profit after tax of Rs 235.24 Crore in latest quarter.
Investment Rationale
The brokerage forecasts an FY21–24E revenue / EBITDA / adj. PAT CAGR of 15%/18%/14%. Note that other income formed 43% of PBT in FY21 (FY24E: ~30%), of which rental income formed 45%. Thus, rental income formed ~20% of PBT in FY21. It broadly maintains FY23E/FY24E EPS, but increase FY22E by 9%, factoring in the 1QFY22 performance. It maintains sell, with TP of INR695 (higher PE multiple of 25x v/s 20x earlier to account for sector re-rating). Any slowdown in exports could be a de-rating catalyst on the stock.
Promoter/FII Holdings
Promoters held 51 per cent stake in the company as of June 30, 2021, while FIIs held 11.7 per cent, DIIs 24.6 per cent and public and others 12.7 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
