Cummins India well set for buoyant demand after tighter norms, broker says

ABB India

02/09/2024 09:02

** Brokerage Motilal Oswal sees Cummins India  CUMM.NS 
"well positioned" to encash on strong demand of diesel generator
sets after tighter emission norms 
    ** CUMM rose as much as ~2% in the day  
    ** Transition to CPCB IV+ emission norms, part of the
government's efforts to reduce pollution, has kept demand strong
"contrary to expectations" - note 
    ** Adds powergen segment will be driven by strong demand and
pricing gains in FY25; strong construction cycle to help
industrial segment 
    ** Brokerage maintains "buy" rating, TP 4,300 rupees 
    ** Co, on an avg, rated "hold", median TP 3,500 rupees -
LSEG 
    ** Rivals Thermax  THMX.NS  flat, ABB India  ABB.NS  and
Siemens  SIEM.NS  drop 2.4% and 1.4% respectively 
    ** YTD CUMM has surged 94% 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))