Cummins India -- Buy this MNC gem

bbob · #1 27th April 2007, 08:29 PM

As I write this, the parent company of Cummins India; Cummins Inc. based out of Columbus Ohio (where I spent many weekends visiting school friends) has declared its quarterly results and is trading at $105 up a whopping 22%

The Dow Jones Industrial Avg is up 6% YTD but Cummins Inc. is up 70% YTD!!

It managed to weather an expected slowdown in US truck sales as newer emission norms (for trucks) went into effect from Jan 1st 2007. Lower sales in its home market were offset by expansion in its overseas joint ventures (The 2 greatest revenue generators for the company happen to be their JV out of Dongfeng China and Cummins India...)

Here is some interesting history about Cummins India if any of the members are interested;

http://content.icicidirect.com/resea...icicode=CUMIND

I know the link is not upto date but it gives you a good idea on the companys involvement in India...

Cummins India has deferred anouncing results at this time and will publish its consolidated audited results before June 30 2007.

One can accumulate this stock over the next one or two months at every dip as Cummins India is expected to announce a stellar set of numbers...

I will try to research and provide some links over the next couple of days...
Sorry, I am going out of town for a holiday this weekend and will only get back in town late Sunday.

I'll try to update before Mondays opening...
Remember its a truncated week next week with the NSE being shut on May 1st an 2nd (for May Day and Buddha Purnima)

Have a great weekend

bbob · #2 30th April 2007, 09:32 AM

This is from page 2 of todays Business Standard regarding a country wide survey on the power situation conducted by ASSOCHAM

"The industrial units located in the northern and western parts of the country are likely to face huge power shortages in the coming months. the shortage may go beyond 20-25% in May and June."

The survey also remarks that;
"Maharashtra is facing one of the worst crises with the energy deficit already touching the 20% mark. It is facing an energy deficit of over 1700 million units and is now resorting to an average load-shedding of 6-7 hours a day. The state is likely to experience a peak hour power shortage of over 25-28% in the next two months."

The power situation (or lack thereof

) is sure to benifit Cummins top and bottom line as they are the leaders in the power generation segment.

Also, I think this will be the first quarter that their balance sheet will include revenue from their JV with Tata Motors (TCIL- Tata Cummins India Limited) which was announced in December 05...

So add to your kitty on declines over the next 2 months or so and reap the rewards...

bbob · #3 30th April 2007, 12:58 PM

Cummins up 5% in down market

Lets see if it takes out its 52 week high...

bbob · #4 2nd May 2007, 08:24 PM

Made a new 52 week high after all!!

Looks good for a short term target of 330 or thereabouts.
Their swelling order book augurs well for the company so going forward accumulate on all declines as Cummins will outperform the market for the next few quarters.

bbob · #5 8th June 2007, 10:35 AM

Cummins up 3% in down market

Both Karvy and Edelweiss recently upgraded Cummins to outperformer.
Karvy has a price target of 335 while Edelweiss has a target of 365...

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