Capital Goods-Non Electrical Equipment · KKC
Gensets
from 5,195 today
Hollow marker shows the firm’s previous target.
Cummins benefits from a diversified business model supporting revenue growth and strong demand outlook with visible 19% EPS CAGR over FY26-30E and 30%+ ROE.
We retain 'HOLD' as DC execution over the near term is likely to remain choppy following a strong Q1. However, we remain positive from a 12-18 month outlook as India's DC build-out accelerates.
We reiterate our BUY rating on the stock with a revised TP of INR6,400 based on an average of 45x P/E and DCF on two-year forward estimates, while expecting an 18%/18%/19% revenue/EBITDA/PAT CAGR over FY26-29.
Cummins is experiencing strong demand traction from data centers, healthcare, infrastructure, and real estate, and we maintain a Buy rating with a revised PT of Rs 6,300.
KKC's 1QFY27 result was lower than expectations due to margin weakness from higher RM prices and delayed price hikes, though revenue showed strong growth led by powergen and data center demand. We reiterate our BUY rating with a TP of INR6,500 based on an average of 45x P/E and DCF on two-year forward estimates.
We upgrade our rating from 'Reduce' to 'Hold' given the recent correction in stock price and the medium-term demand outlook remaining encouraging, aided by the growing data centre opportunity, healthy demand in domestic powergen, and a higher mix of distribution segment.
Cummins India reported better-than-estimated topline growth while margins and profitability faltered in Q1FY27 due to input cost volatility. Management remains optimistic about strong domestic momentum driven by key end-markets, and the rating is maintained as BUY with a revised target price of INR 6,604.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
