Buy Cummins India, target price Rs 475.5: ICICI Direct

ICICI Direct has given buy rating to Cummins India with a target price of Rs 475.50. The share price moved down by 1.20 per cent from its previous close of Rs 470.65. The stock’s last traded price is Rs 465.

Cummins India Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 12911.98 Crore) operating in Engineering sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 488.74 Crore, down 53.09 % from last quarter Sales of Rs 1041.92 Crore and down 63.12 % from last year same quarter Sales of Rs 1325.11 Crore. The Company reported net profit after tax of Rs 45.38 Crore in latest quarter.

Investment Rationale
Price resumes uptrend after basing formation at 100 day EMA & short term consolidation

Promoter/FII Holdings
Promoters held 50.99 per cent stake in the company as of March 31, 2020, while FIIs held 7.46 per cent, DIIs 30.37 per cent and public and other 11.18 per cent.