Result Update: Cummins India Limited - ACCUMULATE - TP Rs. 1,018 - Kotak

Cummins India underperformed Q4FY17 estimates on back of contraction in exports demand. Robust growth in domestic market offset subdued export performance in the quarter. Operating margins also disappointed due to unfavourable product mix.

Management gave FY18 growth guidance to 5-10% YY growth in domestic and flat to negative growth in international business. We roll forward our target price on FY19 estimates; ascribe PER of 30x FY19 earnings (earlier 32x on FY18 earnings) and move recommendation to 'Accumulate' (BUY earlier) with revised target price of Rs 1018 (Rs 1045 earlier).

Shares of CUMMINS INDIA LTD. was last trading in BSE at Rs.945 as compared to the previous close of Rs. 924.45. The total number of shares traded during the day was 21569 in over 1176 trades.

The stock hit an intraday high of Rs. 955.95 and intraday low of 923.05. The net turnover during the day was Rs. 20426087.

Source : Equity Bulls

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