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Change Change %
6.30 0.86%

Updated:19 Apr, 2018, 15:52 PM IST

Change Change %
7.95 1.09%

Updated:19 Apr, 2018, 16:00 PM IST

Research Report Detail

Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
07-08-2017 Buy 942.80 1025.00
Open Long (1Y)

Edelweiss maintains buy on Cummins India

Cummins India (KKC) missed Q1FY18 estimates primarily on account of poor revenue mix and higher employee cost. Key highlights were: a) 12% YoY domestic revenue growth was commendable in light of price cuts in response to competition; and b) exports jumped 30% QoQ (down 5% YoY) on start of restocking which we believe is likely to improve further as demand normalizes from channels. We expect domestic market recovery to be driven by railways, construction and standby DG sets, which coupled with restocking in exports should improve the company's revenue mix going ahead. We believe, KKC is one of the preferred industrial names given potential for strong scalability in RoCE/RoE over the next 2-3 years as domestic demand improves, apart from better cash flow to profit conversion at around 70%. 

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