Cummins India up 40% in 6 months; hits 52-week high as Nomura lifts target

Nomura on Cummins India, share price today: Diesel and natural gas engine manufacturer Cummins India shares rose 2 per cent to a fresh 52-week high of ₹4,094.35 on Wednesday, September 10. Around 10:15 AM, the stock was trading 1.14 per cent higher at ₹4,059.60, outperforming the benchmark BSE Sensex, which was up 0.52 per cent at 81,522.54 levels.

 

Cummins India share has gained 40.3 per cent over the past six months, rising 18.5 per cent in the last three months and over 5 per cent in the past month alone, BSE data showed.

 

The uptick in Cummins India share price today came after Japan-based brokerage firm Nomura raised its target price to ₹4,500 while maintaining its ‘Buy’ rating, citing strong demand prospects, cost efficiencies, and strategic product initiatives. 

 

 

The brokerage expects the company to deliver an 18 per cent PAT CAGR over FY25-28F, with RoE of 33 per cent, supported by a 2 per cent raise in FY27-28F Ebitda to factor in ongoing cost optimisation programs such as ACE and TRIMS.

 

A key driver of growth highlighted by analysts at Nomura is the company’s focus on Battery Energy Storage System (BESS) offerings. The Management expects BESS to further bolster the value proposition of its robust product portfolio.   Track Stock Market LIVE Updates 

 

Analysts noted that Cummins India is concentrating on the stationary storage segment, primarily targeting industrial applications, and is not likely to venture into large utility-scale BESS solutions, for now. Manufacturing is expected to remain largely reliant on China due to the lack of a domestic supply chain, but the company aims to enhance value through “differentiated features.” 

 

Nomura also cites management’s view that BESS demand will be supported as it helps clients achieve their ESG and sustainability goals. Furthermore, solar energy’s intermittent nature is “unlikely to dampen demand for gensets,” which continue to serve as a reliable back-up power source. Customers with both gensets and solar energy are likely to adopt BESS to store intermittent solar power.

 

The brokerage also points to a favourable demand environment. Management sees “the recent GST cuts as a potential positive for powergen demand,” as consumption growth could spur private capex. Expansion in sectors such as real estate, hospitals, data centres, and quick commerce is expected to further support powergen demand. 

 

Growth in the industrial business is also likely from the railway market, where management anticipates healthy demand for diesel electric tower cars (DETC) and power cars, and from indigenisation of construction and mining equipment under the PLI scheme.

 

Despite rising competition in the high-horsepower powergen segment, Nomura’s channel checks indicate that Cummins India’s market share remains stable due to its extensive distribution network, differentiated products, strong relationship with OEMs, warranties and other initiatives. 

 

Additionally, “lower GST on input materials for gensets is likely to be passed on to consumers,” improving affordability and supporting demand.  Cummins India is a leading manufacturer of diesel and natural gas engines, power generation equipment, and related components, serving industrial, automotive, and power sectors in India. Last checked, the company's market capitalisation stood at ₹1,12,532.11 crore. Ihe stock falls under the BSE 100 index category.