The brokerage also cut the target price and has said further de-rating is on the cards.
Diesel and natural gas engines manufacturer Cummins India share price fell nearly 2 percent intraday after Jefferies downgraded rating on the stock to “underperform” from “hold”, citing a further drop in exports.
The global brokerage house also cut price target to Rs 320 from Rs 435.
"The company's exports could further drop post the FY20 decline. Excess supply and weak domestic demand will imply continue price competition while unlisted subsidiaries are likely to take away new opportunities," said the brokerage.
Jefferies feels further de-rating is on the cards as medium-term return on equity dropped below 15 percent.
The stock was trading at Rs 372.20, down 0.21 percent on the NSE at 1109 hours. It has lost 5 percent in the last one week and 40 percent since the last week of January this year.
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