Brokers’picks: Cummins, Sobha Devel

Nomura Retains ‘Reduce’ on Cummins

TARGET: Rs 371

CURRENT PRICE: 403.35

India emerging as a market with strong long-term fundamentals with key drivers being private consumption and power shortages, with KKC’s strong market position being an added advantage.

Cummins India enjoys >50% market share in large gensets (>160 kVA) and 30-40% market share in small gensets.

MS Stays ‘Overweight’ on Sobha Devel

TARGET: Rs 422

CURRENT PRICE: 276.30

Morgan Stanley is OW on SDL in view of its good operational scale up, market diversification, end-to-end capability and reasonable valuations.

SDL could benefit from long-term growth visibility, which is closely linked to GDP growth and the continuing trends toward urbanization and nuclear families.