Cummins India Ltd

NSE :CUMMINSIND   BSE :500480  Sector : Capital Goods-Non Electrical Equipment

About Company: Cummins India Limited is a manufacturer of diesel and natural gas engines, generator sets and related services. The Company operates through two segments: Engines and Lubes. Its three businesses include Engine Business, Power Systems Business and Distribution Business. The Engine Business manufactures and markets diesel and natural gas engines from 65 horsepower (HP) to 500 HP. These engines power heavy and medium-duty trucks, light-duty trucks and buses, in addition to industrial applications, such as construction and military equipment. The Power Systems Business designs and manufactures high horsepower engines for railways, mining and power generation applications. It caters to the power requirements of a range of individual and institutional customers in various segments, such as infrastructure and hospitality. The Distribution Business, operating under the brand name Cummins Sales and Service India (CSS), provides products, services and solutions for uptime of its equipment.

New in Stock: Cummins reported 18.24 percent YoY increase in consolidated revenues for the March 2021 quarter at Rs.1,256.25 crore. On a sequential basis, the total sales revenues were down by 12.21 percent. Research and broking firm Kotak Institutional Equities has retained its buy call on the stock with a target price of Rs 1,030 per share. The firm has increased fair value by 10 percent to account for modest business benefits.

Daily Chart of Cummins India:

Technical Outlook Of Cummins India:

Stock on the daily chart is forming higher highs higher low chart structure. Today stock rallied more than 5.7% on account of March21 Quarterly results and targets upgraded by Kotak Institutional Equities. After touching high of 934.25 on 5th April 21 stock corrected and touched low of 747 on 27th May 21. When we plotted Fibonacci Retrenchment on previous trend we observed stock has crossed 78.6% retrenchment level at 894. Now 894 would act as immediate support for the stock and we may see outperformance in the stock in the next few trading sessions. We expect stock to head towards 934.25 level and once stock surpasses 934.25 on closing basis, it will head towards phycological mark of 1000. In short we recommend Fresh buy on stock for the targets of 934.25 and stop loss below 862.