Motilal Oswal has sell call on with a target price of Rs 535. The current market price of Cummins India Ltd. is Rs 781.3. Time period given by analyst is 12 months when Cummins India price can reach defined target.
Cummins India Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 21621.60 Crore) operating in Engineering sector.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 1314.78 Crore, down -11.85 % from last quarter Total Income of Rs 1491.57 Crore and up 16.41 % from last year same quarter Total Income of Rs 1129.48 Crore. Company reported net profit after tax of Rs 133.77 Crore in latest quarter.
Investment Rationale
The brokerage maintains long-term thesis on structural issues in the current business, valuations could remain buoyant in the medium term on account of option value (future technologies such as hydrogen fuel cell related opportunities and any corporate development between the listed and unlisted entities). The recent disruption caused by the second COVID wave could possibly delay recovery across the key end markets. The brokerage largely maintains FY22/FY23E estimates and maintains Sell rating, with TP of INR535 (20x FY23 EPS).
Promoter/FII Holdings
Promoters held 51 per cent stake in the company , FIIs held 10.9 per cent, DIIs 26.5 per cent and public and others 11.6 per cent.
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