Cummins India (KKC IN) – Q1FY27 Result Update – Mixed Q1; Price hike to cushion margin headwinds – Upgrade to ‘HOLD’
Published on 07 Aug 2026
Management remain cautious on exports due to weakness in the Middle East; however, enquiry momentum across Europe and Asia-Pacific remains encouraging. With healthy enquiry momentum, expanding service opportunities, improving localisation and sustained investments across data centres, railways and mining, Cummins remains well positioned for profitable long-term growth despite near-term commodity and geopolitical headwinds. The stock is currently trading at a P/E of 54.7x/45.7x for FY27/28E. We upgrade our rating from ‘Reduce’ to ‘Hold’ given the recent correction in stock price and the medium-term demand outlook remaining encouraging, aided by the growing data centre opportunity, healthy demand in domestic powergen, and a higher mix of distribution segment. We value the stock at a PE of 45x Mar’28E (same earlier) with revised TP of Rs 5,323 (Rs5,133 earlier).
