Cummins India faces margin, valuation hurdles despite robust demand

Cummins India is a company that makes big engines.

People want to buy a lot of these engines right now, which is good for the company.

But there are some worries.

One worry is that customers who use data centres might want even bigger and stronger engines.

These bigger engines are not made in India.

They are brought from America.

When the company sells engines made in another country, it does not make as much money.

This could hurt the company's profits.

Another worry is that the company's value and margins face challenges.

Even though demand is strong, these problems could make things harder for Cummins India.