Cummins India's Power Generation Segment Demand Outlook Appears Positive — Market Talk
Cummins India's demand outlook for its power generation segment is likely still positive, Nomura's Umesh Raut says in a research report. Management reiterated this view, aided by broad-based demand contributed by multiple end-user markets such as data centers, the analyst notes. The company's distribution segment is on a strong footing, driven by rising demand for products including dual fuel kits and by expansion of organized fleet and leasing markets, the analyst says. The manufacturer of diesel and natural gas engines expects consistent growth in the industrial segment, partly supported by ongoing momentum in the construction sector. Nomura raises the stock's target price to INR4,260.00 from INR3,800.00 with an unchanged buy rating. Shares are 0.8% lower at INR3,777.40. (ronnie.harui@wsj.com)