Cummins India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Cummins India is navigating a complex landscape characterized by robust domestic demand, particularly from the data center sector, which is expected to drive revenue growth. However, the company faces significant margin pressures due to rising input costs and competitive dynamics, leading to a contraction in gross margins. Management's strategic focus on price adjustments and leveraging its strong order book in high-growth sectors like railways and mining is crucial for maintaining profitability. Vista's financial outlook reflects stable revenue growth aligned with historical performance, but margin pressures are anticipated to persist, necessitating efficiency improvements. The overall market environment remains supportive, with a favorable macro backdrop, yet geopolitical uncertainties and supply chain constraints pose risks. Over the next 12-24 months, key opportunities include capitalizing on the data center boom and expanding distribution networks, while watchpoints include managing input cost volatility and potential shifts in product mix that could impact margins
Why We Like This Stock
- Strong domestic demand, particularly from the data center sector, is expected to drive revenue growth
- Management's proactive pricing strategies and focus on high-margin segments are likely to support profitability
- A robust order book in railways and mining provides additional revenue visibility
Things To Watch Out For
- Rising input costs and supply chain bottlenecks are exerting significant pressure on margins
- Geopolitical uncertainties may impact export performance and overall market stability
- Potential shifts in product mix towards imported engines could further compress domestic margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,000 | 10,391 | 12,153 | 13,099 | 15,347 |
| Profit Before Tax (Cr.) | 2,205 | 2,587 | 3,168 | 3,123 | 3,864 |
| PBT Margin | 24.5% | 24.9% | 2606.8% | 23.8% | 25.2% |
| Net Profit (Cr.) | 1,694 | 1,990 | 2,441 | 2,423 | 2,998 |
| Earnings Per Share | 61.1 | 71.8 | 88.1 | 87.4 | 108.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▲ Buy | 6,700 | 06-Aug-2026 |
| Geojit Financials | ▲ Buy | 6,160 | 07-May-2026 |
| Goldman Sachs | ▼ Reduce | 3,980 | 01-Jun-2026 |
| HDFC Securities | ▲ Buy | 7,096 | 01-Jun-2026 |
| HSBC | ▲ Buy | 6,500 | 06-Aug-2026 |
| IDBI Capital | ▼ Reduce | 5,046 | 29-May-2026 |
| JPMorgan | ► Neutral | 5,882 | 06-Aug-2026 |
| Jeffries | ▲ Buy | 6,700 | 07-Aug-2026 |
| Kotak Securities | ▼ Sell | 5,700 | 13-Jul-2026 |
| Macguire | ▲ Buy | 5,850 | 01-Jul-2026 |
| Moneycontrol | ▼ Underweight | nan | 02-Jun-2026 |
| Motilal Oswal | ▲ Buy | 6,500 | 07-Aug-2026 |
| Nomura | ► Neutral | 6,000 | 06-Aug-2026 |
| Prabhudas Liladhar | ► Hold | 5,323 | 07-Aug-2026 |
| UBS | ▼ Reduce | 5,500 | 01-Jun-2026 |
Company Overview
Show Company Profile
Cummins India Limited engages in the design, manufacture, distribution, and service of engines, generator sets, and related technologies in India, Nepal, and Bhutan. The company operates through two segments, Engines and Lubes. It provides accelera, G-drive, fire pump drive, hydrogen, and natural gas engines; and generators and power systems, including integrated power systems, alternators, transfer switches, generator set controls, system level controls and switchgears, and browse generators. The company also offers engine components, such as fuel systems, turbochargers, and engine braking and valvetrain technologies; and aftertreatment emission solutions, as well as operates component care centers. In addition, it offers drivetrain and braking systems comprising axles, brakes, carriers, drivelines, gearboxes and power take-offs, gears, suspensions, tire inflation systems, transfer cases, trailer solutions, and transmissions; parts and sales and services; software and electronic products; and digital products. The company serves commercial buildings, data centers, realty, infrastructure, hospitality, defense, greenhouse, healthcare, manufacturing, marine, mining, oil and gas, rental power, RVs, small business, telecom, water treatment, automotive, power transmission, and distribution industries, as well as end users, original equipment manufacturers (OEMs), channel partners, dealers, and retailers. It exports to the United States, Europe, Mexico, Africa, the Middle East, and China. The company was incorporated in 1962 and is headquartered in Pune, India. Cummins India Limited is a subsidiary of Cummins Inc.