Cummins India - Near Term Domestic Demand Intact: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We met with the management of Cummins India Ltd. The management highlighted that demand scenario continues to remain strong in domestic market with continued sales of CPCB-II (time extended till June 2024) and CPCB-IV variant products from regions like NCR. However, in exports market demand remains healthy only in selected geographies. The imported components of CPCB-IV variant product will be localised and accordingly aid in improved product margins. Management maintained its guidance of two times gross domestic product growth over next couple of years (double digit sales growth in FY24) and guidance of 100 basis points improvement in margins, given sharp focus on cost management. Cummins’ outlook remains intact given- strong domestic demand in power gen across sectors,improving margin profile, andample room for growth in the distribution business. We estimate FY23-25E revenue/profit after tax compound annual growth rate of 12%/11.4%. The stock is trading at price-to-earning of 38.1 times/33.8 times FY24/25E. Maintain ‘Hold’ rating on stock with target price of Rs 1,788 (same as earlier), valuing it at 35 times on FY25E EPS (same as earlier)..Click on the attachment to read the full report:.HDFC Bank - Discloses Merged Entity Networth And Other Key Metrics: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cummins India - Near Term Domestic Demand Intact: Prabhudas Lilladher

The imported components of CPCB-IV variant product will be localised and accordingly aid in improved product margins.

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