Buy Cummins India Ltd., target Rs 1000: Religare Securities

Religare Securities has Buy call on Cummins India Ltd. with a target price of Rs 1000.0. The current market price of Cummins India Ltd. is 892.0. Time period given by analyst is year, when Cummins India Ltd. price can reach defined target. Cummins India's Q1FY17 results beat estimates on account of a below-expected decline in exports and 9% YoY growth in the domestic business. The brokerage said margins were in line with estimates even as gross margins declined 43bps YoY due to an adverse product mix. It pegged PE at 29.4x FY17 and 25.6x FY18 estimated earnings. Cummins India rose 2.16% to `858.30 on Friday.