Buy Cummins India, target price Rs 985: Yes Securities

Yes Securities has buy call on Cummins India with a target price of Rs 985. The current market price of Cummins India Ltd. is Rs 910.15. Time period given by analyst is Intra Day when Cummins India Ltd. price can reach defined target.

Cummins India Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 25216.88 Crore) operating in Engineering sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1314.78 Crore, down -11.85 % from last quarter Total Income of Rs 1491.57 Crore and up 16.41 % from last year same quarter Total Income of Rs 1129.48 Crore. Company reported net profit after tax of Rs 133.77 Crore in latest quarter.


Investment Rationale
The stock has resumed the uptrend after breaking out of a Triangle pattern resistance on good volumes. Technical indicator RSI turning upwards beyond the 60-level suggests extended upside in the stock.

Promoter/FII Holdings
Promoters held 51 per cent stake in the company as of Dec 30, 2020, while FIIs held 8.95 per cent, DIIs 27 .50 per cent and public and others 12.53 per cent.