Shares of Cummins India were in focus on Monday, November 10, after global brokerage firm Jefferies upgraded the stock to ‘Buy’ from ‘Underperform’ and hiked the target price to Rs 5,120 from Rs 2,700, implying significant upside potential from current levels.
The brokerage highlighted that pricing has stabilised, with the company’s first-half gross margins remaining flat versus its earlier expectations of a dip. It added that domestic demand remains strong across key segments, and management confidence in price stability has improved.
Jefferies also noted a rising contribution from data centre demand, which is expected to drive growth over the medium term. The firm now projects a 22% EPS CAGR between FY25–FY28, backed by strong earnings visibility and robust demand outlook, while also revising its FY28E EPS estimates upward by 9%.
Additionally, Jefferies pointed to Cummins India’s healthy return ratios, forecasting a 30%+ return on equity (ROE) for the medium term.
At 10:00 AM, Cummins India shares were trading marginally lower at Rs 4,291.40 on the NSE, with a market capitalization of Rs 1.19 lakh crore.
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