JPMorgan initiates Cummins India stock with Overweight rating

Published 10/09/2025, 07:56
JPMorgan initiates Cummins India stock with Overweight rating

Investing.com - JPMorgan has initiated coverage on Cummins India (KKC:IN) with an Overweight rating and a price target of INR4,649.00.

The investment bank views Cummins India , which is approximately 51% owned by Cummins Inc., as a long-term play on industrial, infrastructure, and building capital expenditure growth in India, as well as intermittent peak power deficits.

JPMorgan notes that Cummins India’s market leadership in high horsepower generator sets, technical advantages, established brand, distribution network, and scaled manufacturing capabilities stem from its more than 60-year presence in India, resulting in strong returns on capital employed and cash flows.

The firm believes Cummins India’s business momentum remains healthy in the medium term, with robust end-market activity driving better-than-peers revenue growth visibility and strong margin performance.

Following the implementation of CPCB-IV emissions norms, JPMorgan observes that pricing has stabilized and industry volume has recovered to CPCB-II levels, with Cummins India’s management guiding for double-digit revenue growth in FY26E after strong 1QFY26 results.

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