Nomura downgrades Cummins India shares to Neutral despite raising target price by 25%. Here’s why

Nomura downgraded Cummins India to “Neutral” despite raising its target price by 25%, citing stretched valuations and near-term margin pressure from rising commodity costs.

While the brokerage remains optimistic about long-term growth driven by data centres and emission norm upgrades, it believes the current valuation leaves limited room for further upside.