CMP (NSE) 14:13, 17 Jun
Last updated on
01 Mar, 2021
Well placed to leverage the capex upcycle
Bullish on domestic demand outlook: Cummins is enthused with the sustained improvement in demand across most end-markets which has led to a strong recovery in data-centres, industrial, infra aiding Powergen, while the recovery in construction and mining is driving growth in the industrial segment, offsetting Railways, which is trailing by 6-8 months. Early indicators of revival in capex are stronger than in the previous cycle. Structural tailwinds to data-centres, construction (infra), PLI-linked manufacturing capex and recovery in pockets of real estate, with a relevant and competitive product portfolio, favourably place Cummins to ride the recovery wave in the capex cycle.
Long-term growth levers − Well oiled: Cummins is set to benefit from the rising adoption of emission control across global markets, with its refreshed and cost-competitive portfolio. Strong domestic manufacturing capabilities and consolidation in the engine space are expected to drive long-term growth for Cummins (exports & domestic). Further, access to global technology platforms will enable the company to offer hybrid/green power solutions (battery/hydrogen-led) as & when the domestic market is ready.