Prabhudas Lilladher maintains hold on Cummins India, target price Rs 619

Prabhudas Lilladher has maintained hold rating on Cummins India in the long term with a target price of Rs 619. The stock ended up 0.3% at Rs 570.70 on Thursday while the Sensex fell 382.91 points down at 37,068.93.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 1325.11 crore, up .13 % from last quarter sales of Rs 1323.42 crore and up 1.50 % from last year same quarter sales of Rs 1305.58 crore. The company has reported net profit after tax of Rs 121.81 Crore in latest quarter.


Investment Rationale

The company re-emphasised on its earlier guidance of single digit domestic growth and weak exports in FY20, said Prabhudas Lilladher. The company is fully geared up for launching new CPCB IV+ products which are expected to be launched in India by 2020-21, the brokerage said. The brokerage expects Cummins to deliver earnings CAGR of 4% over FY19-21.