Prabhudas Lilladher puts 'accumulate' on KPIT Cummins

RESEARCH: PRABHUDAS LILLADHER

RATING: ACCUMULATE

CMP: Rs 132.65

Prabhudas Lilladher reiterates ‘Accumulate’ rating on KPIT Cummins with a 11% higher target price of Rs 140. PL remains optimistic on the success of the company’s recently launched product ‘Revolvo’, which is an indigenously developed hybrid technology solution for automobiles.

KPIT announced a 50:50 joint venture with Bharat Forge to manufacture and market the same. The company, which is currently focussed on the retrofit market for 130 million vehicles in India, is trying to tie up with OEMs and service stations. This new product is expected to have a material impact on the revenues and margins, improving the revenue mix and de-risking the business model for KPIT.