Cummins India Ltd. share price target

Market Leadership: India's leading manufacturer of diesel and gas engines, serving a wide spectrum of applications across industries. Robust Demand from Core End-User Industries: Strong economic growth and rising industrial activity are to drive sustained demand for gensets and industrial engines. Technological support & Strong Service Network: Global tech support and robust aftermarket & distribution network provide a competitive advantage over peers....

Cummins India (KKC)’s 4QFY25 results reflected weakness in revenue, while EBITDA margin and PAT outperformed our estimates. The company reported 6% YoY revenue growth, while EBITDA/PAT declined by 5%/7% YoY, mainly due to a high base of last year.

We revise our FY26/27 EPS estimates by -1.2%/-2.1% given the cautious export outlook amid tariff and geopolitical uncertainties. Cummins India (KKC) reported a revenue growth of 6.4% YoY, while EBITDA margin shrunk by 235bps YoY to 21.2% against a high base. The pre-buy of CPCB IV+ compliant gensets in base quarter saw a YoY decline in powergen segment. While volumes and pricing of CPCB IV+ products are expected to stabilize over the next few quarters, powergen continues to benefit from strong demand across end industries, including emerging opportunities in power backup for quick...

Cummins India (KKC) delivered healthy performance in Q4FY25 which were in tune with our estimates. Revenue for the quarter was higher by 7% YoY and lower by 20% QoQ. The key positive of the management commentary was demand continuing to remain strong and also being broad based across key infrastructure verticals like residential real estate, commercial realty and data centers. Another key positive was of Gross margins coming in at 37.5% for the quarter. This is a result of the management's assiduous efforts in reducing direct material costs, optimizing product mix and suitable pricing. Guidance is of...

Cummins reported a robust Q3 revenue print; margin remains off its peak levels seen in H2FY24 (though still robust). A sequential revenue jump of 24% was largely driven by the HHP segment of the domestic power gen business (74% contribution to incremental revenue QoQ).

Cummins India’s (KKC) 2QFY25 results exceeded our and consensus estimates, with 31%/42%/37% YoY growth in revenue/EBITDA/PAT.

From our recent interaction with the management, Cummins India (KKC) appears to be well positioned to benefit from the change in emission norms for diesel gensets.

Cummins India’s Q1FY25 print stood impressive (soft revenue growth, stellar margin expansion) with management commentary exuding optimism for domestic business in near term.

Cummins India (KKC)’s 1QFY25 results exceeded our and consensus estimates, with 4%/37%/33% YoY growth in revenue/EBITDA/PAT.

Cummins India Ltd (CIL) reported Standalone operating profit/ APAT growth of 37.2%/ 33%, beat our estimates. Revenue was flat with growth of 4% y-o-y to Rs 2.304 crore, hit by a 22% decline in export sales.

The company reported strong beat on Q4FY2024 consensus earnings estimates, with standalone revenue/ operating profit/adjusted net profit growth of 20%/67%/76% y-o-y to Rs. 2,316 crore/Rs. 544 crore/Rs. 562 crore, respectively

Strong Q3 topline growth of 16% YoY despite lower exports, along with 330bps gross margin expansion as input costs eased

Q2 gross/EBITDA margins expand 500bps/320bps YoY on lower input costs, sustained pricing and better product mix

Cummins India reported revenue / EBITDA / PAT growth of 31% / 59% / 51% YoY at INR 22.1bn / 3.4bn / 3.2bn respectively. Powergen segment (+76% YoY) benefited from domestic and pre-buying demand. The Central Pollution Control Board (CPCB) has changed the deadline for CPCB II genset sales to Jun’24.