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.
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.
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