Weak demand, margin pressure set to worsen for Cummins India; stock falls

Weak demand and competitive pressure, both in the domestic and export markets, have been weighing on Cummins India’s performance. This has led to a 25 per cent fall in its stock over the last three months.  In fact, the slowing pace of growth had prompted the firm — a major player in medium-to-high horsepower range of diesel engines — to cut its FY20 growth estimates.  For its domestic business, it has guided for 8-10 per cent growth (from 10-15 per cent earlier). The export situation has worsened, leading to a guidance of 12-15 per cent decline, against.....

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