1 week ago
Motilal Oswal Sees 23% Upside for Cummins India
Motilal Oswal thinks Cummins India’s business could grow strongly.
It kept its Buy recommendation for the company’s shares.
The brokerage believes data centres will need many of Cummins India’s power systems.
It expects the powergen business to grow quickly through FY26–29.
Other areas, including railways, mining, defence, and marine, may help balance weaker construction demand.
The distribution business could also expand through spare parts, services, and telematics.
Cummins India plans to offer battery storage solutions starting in FY26.
The company raised prices to help protect profits from higher raw-material costs.
Motilal Oswal retained its Buy rating on Cummins India but lowered its target price to Rs 6,400 from Rs 6,500.
The brokerage expects data centre demand to drive a 19% revenue CAGR in the powergen segment during FY26–29.
Industrial and distribution segments are projected to grow at CAGRs of 12% and 21%, respectively, over FY26–29.
Exports are expected to grow at a 16% CAGR, led by High-Horsepower systems in Europe, Latin America, and Asia-Pacific.
Cummins India raised prices in July 2026 after commodity-cost pressures affected Q1 FY27 margins.
- Who
- Motilal Oswal and Cummins India.
- What
- Motilal Oswal reiterated its Buy rating and forecast 23% upside for Cummins India, while reducing its target price to Rs 6,400.
- Where
- The growth outlook covers Cummins India’s Indian operations and exports to Europe, Latin America, Asia-Pacific, and other markets.
- When
- The forecasts cover FY26–29; the article says Cummins India raised prices in July 2026 after Q1 FY27 margin pressure.
- Why
- The brokerage expects strong data centre demand, industrial diversification, distribution growth, new energy opportunities, and resilient exports to support the company.
Key facts
- Brokerage view
- Motilal Oswal retained its Buy rating on Cummins India.
- Target price
- Rs 6,400, reduced from Rs 6,500.
- Implied upside
- 23% from the current market price.
- Powergen growth
- Estimated 19% revenue CAGR during FY26–29.
- Distribution growth
- Estimated 21% CAGR during FY26–29.
- Export growth
- Expected 16% CAGR during FY26–29.
- Margin target
- Management is targeting a long-term EBITDA margin range of 20–21%.
Sources
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