UBS has maintained a “Sell” rating on Cummins, setting a target price of ₹2,380, which implies a potential downside of 33% from the current market price (CMP) of ₹3,538.25. Despite a strong Q2 FY25 performance, with a 12% and 14% beat on consensus topline and EBITDA estimates, UBS remains cautious.
The brokerage noted that while the company’s significant beat on earnings could prompt consensus upgrades, management’s commentary on growth and product mix in the second half of FY25 will be critical. UBS also highlighted that following the pre-buying activity, demand and margins are expected to normalize in the upcoming quarters.
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