Hold Cummins India, target price Rs 486: Emkay Global

Emkay Global has given a hold rating to Cummins India with a target price of Rs 486. The share price moved up by 1.63 per cent from its previous close of Rs 431.55. The stock’s last traded price is Rs 438.60.
Cummins India Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 12106.71 Crore) operating in Engineering sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 488.74 Crore, down 53.09 % from last quarter Sales of Rs 1041.92 Crore and down 63.12 % from last year same quarter Sales of Rs 1325.11 Crore. The Company reported net profit after tax of Rs 45.38 Crore in latest quarter.


Investment Rationale
The brokerage said the powergen segment will remain weak but it expects recovery in the overall business.

Promoter/FII Holdings
Promoters held 50.99 per cent stake in the company as of March 31, 2020, while FIIs held 7.46 per cent, DIIs 30.37 per cent and public and other 11.18 per cent.