Cummins India stock gets an upgrade from Jefferies, check stock reaction  

Shares of Cummins India were trading on a flat note on Monday even as the global brokerage firm Jefferies upgraded the stock to ‘Buy’ from ‘Underperform’ and hiked the target price to Rs 5,120 from Rs 2,700, a major upside potential from current levels.

Cummins India shares were trading 0.32% lower at Rs 4280 today against the previous close of Rs 4294.05. Cummins India stock is trading higher than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day but lower than the 5 day and 10 day moving averages.

The stock has gained 16% in one year and risen 32.30% since the beginning of this year.

Total 7,215 shares changed hands amounting to turnover of Rs 3.10 crore on BSE.

Market cap of the firm rose to Rs 1.18 lakh crore. The stock hit a 52-week high of Rs 4494.40 on November 7, 2024 and 52-week low of Rs 2594.75 on April 7, 2025.

Jefferies highlighted that pricing has stabilised, with the company’s first-half gross margins remaining flat versus its earlier expectations of a dip. It added that domestic demand remains strong across key segments, and management confidence in price stability has improved.

The brokerage also mentioned a rising contribution from data centre demand, which is likely to drive growth over the medium term. The firm sees a 22% EPS CAGR between FY25–FY28, backed by strong earnings visibility and robust demand outlook, while also revising its FY28E EPS estimates upward by 9%.

Jefferies also referred to Cummins India’s healthy return ratios, forecasting a 30% plus return on equity (ROE) for the medium term.

In Q2, the company’s profit after tax (PAT) came at Rs 638 crore, a 42 per cent rise over the year-ago period and an 8 per cent rise compared to the preceding quarter. Profit before tax (before exceptional items) rose 41 per cent on a year on year basis and 16 per cent sequentially to Rs 839 crore. 
 
Cummins India reported a 28% year-on-year (Y-o-Y) increase in total sales to Rs 3,122 crore and a 9 per cent rise sequentially. 

Cummins India is a leading producer of diesel and natural gas engines. It belongs to the auto ancillary industry. It has a country-wide network of 20 dealerships with over 450 service points that provides products, services, and after-market solutions for the uptime of Cummins equipment and engines to customers in India, Nepal, and Bhutan.