Buy Cummins India, target price Rs 2920: IIFL Research
IIFL Research has buy call on Cummins India at current market price of Rs 2843.5. The target price of Cummins India is Rs 2920.
About Cummins India:
Cummins India is a leading manufacturer and distributor of diesel and natural gas engines, generators, and related components. It is a subsidiary of Cummins Inc., a global Fortune 500 company. Cummins India has a strong presence in India, with three manufacturing facilities and a wide network of sales and service outlets. The company offers a wide range of products and services to meet the needs of customers in various industries, including power generation, construction, mining, transportation, and agriculture. Cummins India is committed to sustainability and innovation, and it has been recognized for its excellence in these areas.
52 Week Price Trend:
CUMMINSIND's CMP stands at Rs 2843.5, indicating a significant appreciation from its 52-week low of Rs 1481. The stock has recently surged to reach a 52-week high of Rs 2828.35. This market performance suggests a bullish trend for CUMMINSIND, potentially driven by positive market sentiment, favorable industry trends, or company-specific developments. Investors should conduct thorough research and consult with financial professionals before making any investment decisions.
Stratzy's Analysis:
CUMMINSIND's exceptional performance across Stratzy's MOST framework has earned it an AAA rating. The company's strong management, positive outlook, robust safety measures, and favorable market trend indicate a low level of fundamental risk, making it an attractive investment opportunity.
Company's Fundamentals:
Cummins India (CUMMINSIND), a diesel engine manufacturer, currently trades at a Stock Price-to-Earnings ratio (PE) of 53.4. This indicates that investors are willing to pay 53.4 times the company's current earnings per share. Compared to its peers, CUMMINSIND's PE is relatively high. The Price-to-Book ratio (PB) of 13.41 implies that investors are paying 13.41 times the company's book value, which is the value of its assets minus liabilities. This ratio is considered moderate and indicates that the company is fairly valued. Lastly, CUMMINSIND's Dividend Yield of 0.91% suggests that the company distributes a small portion of its profits as dividends to shareholders.
Fundamental and Technical information provided in this blog were last updated on 09 Mar, 2024
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