Japanese brokerage Nomura has downgraded Cummins India to “Neutral” from “Buy” and raised the target price to Rs 6,000 from Rs 4,780 earlier (25% increase), implying a limited downside from current market levels. Following the brokerage action, shares of the power generation company fell 2.7% to an intraday low of Rs 5,858 on Friday.
The brokerage said the stock is currently trading at 52x FY28 estimated earnings, which it believes leaves little room for further re-rating. The revised target price is based on a sum-of-the-parts valuation rolled forward to June 2028 earnings and implies a target P/E multiple of 49x, compared with 42x earlier, supported by strong prospects in the data centre segment.
