Cummins India shares will be in focus after Jefferies maintained an Underperform rating on the stock, with a target price of ₹2,405. The stock last closed at ₹3,170.00.
In its latest note, Jefferies flagged that Cummins India’s Q4FY25 EBITDA missed estimates by 14%, while sales were 19% below expectations. Though the company reported higher gross margins — up 139 basis points YoY and 225 bps sequentially to 36.1% — the margin outlook remains clouded by pricing uncertainties.
On its earnings call, Cummins management reiterated that CPCB IV+ pricing will take another one to two quarters to stabilize, adding to near-term margin visibility risks.
While the company guided for double-digit sales growth in FY26E, Jefferies remains cautious on margin performance and prefers other industrial names in the sector. The brokerage stated it would prefer Siemens, HAL, KEI, ABB, and L&T over Cummins India at current valuations, given better margin predictability.
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