Buy Cummins India, target of Rs 412: Hem Securities
Hem Securities has recommended a buy rating on Cummins India with the target price of Rs 412 which is approximately 31% up from the current market price of Rs 314 in its April 2, 2008 research report. “The company with strong order book and capital expenditure plans of Rs 814 crore is expected to witness huge surge in volume along with capacity addition. The company major chunk of revenues are coming from the power sector and power sector being the hot sector in the economy is expected to strengthen the revenues for the company. The stock at the current market price of Rs 314 will trade 22.95 times to its earnings and 5.68 times to its book value and is expected to provide handsome returns in medium to long-term. Therefore, we are initiating ‘BUY’ signal on the stock with the target price of Rs 412 which is approximately 31% up from the current market price of Rs 314″ says, Hem Security research report
