Q3 FY21 Result Update - Cummins India - YES Securities

(Rating: ADD, TP: Rs 720, Upside 9%)

- Healthy Q3FY21 performance led by demand recovery in powergen business & strong margins due to favorable sales mix, cost control initiatives & lower employee cost

- Government's thrust on the Road, Rail and Metro projects along with new investments into data centre and 5G telecom network will aid in faster demand revival for KKC's products

- Raise FY22 earnings estimates by 30% to factor in better than expected recovery

- Expect valuation re-rating driven by EBITDA CAGR of 17% over FY21-FY23E, improvement in return ratios & better earnings quality (Non-core income 29% of FY23E Consol. PBT vs 37% in FY20)

Shares of CUMMINS INDIA LTD. was last trading in BSE at Rs.659.45 as compared to the previous close of Rs. 637.1. The total number of shares traded during the day was 211685 in over 7379 trades.

The stock hit an intraday high of Rs. 688.65 and intraday low of 636.6. The net turnover during the day was Rs. 140399045.

Source : Equity Bulls

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