Nomura has reiterated its buy rating on Cummins India with a target price of ₹4,500 per share. At the current market price of ₹4,015.10, the target implies an upside of nearly 12 percent.
The brokerage said cost efficiencies are increasingly being ingrained into the company’s growth ethos, helping strengthen margins and profitability. Nomura raised its FY27–28F EBITDA estimates by 2 percent and now expects Cummins to deliver an 18 percent compound annual growth rate in profit after tax over FY25–28. It also projects return on equity of around 33 percent in this period.
Nomura highlighted that Battery Energy Storage Systems (BESS) will further bolster Cummins’ value proposition by complementing its existing product portfolio. It added that a buoyant demand outlook and the expectation of a revival in private sector capital expenditure, supported by GST cuts, provide additional tailwinds for the company’s growth trajectory.
At current levels, Nomura said Cummins continues to offer attractive growth potential with a strong mix of efficiency gains, product diversification and robust demand visibility.
Disclaimer: The views and investment recommendations expressed above are those of Nomura. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
