Buying Cummins India makes sense here

bharat_vora's picture

Cummins had annual sales hitting 3400 Cr with net profit of 433 cr , a helathy profit margin of 15%. Sales has been growing almost 50% for 5 years now. At market cap of 8500 Cr , company is a good bargain play. There big opportunities out there for cummins to grow further. Prices to sales ration resonable and p.e of 20 is not expensive at all considering growth .

Raw material prices has gone up little bit compared to last yeare but cummins is good at passing these raises to its customers.


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