Buy Cummins India; target of Rs 1430: Sharekhan

Sharekhan is bullish on Cummins India has recommended buy rating on the stock with a target price of Rs 1430 in its research report dated August 11, 2022.

August 14, 2022 / 01:15 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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Sharekhan's research report on Cummins India


Cummins reported strong standalone revenues with 42% y-o-y growth driven by both domestic and export markets. Adjusted net profit grew by ~60% y-o-y. The demand outlook is robust in both domestic and exports driven by demand from data centers, mining, healthcare, realty and infrastructure. The Company could achieve double digit volume growth given the promising demand. Cummins has a strong pedigree, healthy balance sheet, constantly evolving product portfolio to meet the changing emission norms and improving earnings trajectory. We expect revenue/PAT CAGR of ~19%/21% over FY22-24E.


Outlook


We reiterate Buy on Cummins India (Cummins) with a revised PT of Rs 1,430 given its robust performance during the quarter and bullish outlook.


For all recommendations report, click here


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Cummins India - 120822 - khan

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first published: Aug 14, 2022 01:15 pm
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