Cummins India shares jumped 2% after HSBC maintained a buy rating, even as it revised the target price to ₹3,500 from ₹4,200, citing a moderation in growth prospects. Despite the downward revision, the stock still offers significant upside from current levels. As of 9:28 AM, the shares were trading 2.37% higher at Rs 2,940.00.
In its latest report, HSBC highlighted strong Q3 earnings, which exceeded market expectations due to robust revenue growth across all segments. However, margin weakness remains a concern, offsetting some of the strong topline performance.
The brokerage firm pointed out that limited scope for margin expansion could lead to slower growth in the coming quarters. As a result, HSBC has adjusted valuation multiples to reflect this moderation, leading to the lower target price.
Despite these challenges, Cummins India continues to demonstrate resilience and strong business fundamentals. The company remains well-positioned in the market, with a solid long-term growth trajectory.
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