Analyst Calls: Cummins India, Navin Fluorine, City Union Bank

Good morning!

• Ambit has initiated coverage on Navin Fluorine with a buy rating and target price of Rs 1,800. The company’s fluorination expertise and pharma innovator relationships differentiate it from peers, said Ambit. Business rapidly evolved from commodity to specialty, driving margins and Shares of Navin Fluorine ended up 4.1 per cent at Rs 1,527.7 on Thursday.

• JM Financial has upgraded Cummins India to buy from hold and lowered target price to Rs 440 from Rs 630. The brokerage has cut its earnings estimates on Cummins India by 23 per cent for FY21-FY22 period to factor in the Covid-19-related slowdown. The stock is down over 55 per cent from its one-year peak over several concerns regarding a demand slump owing to a weak capex cycle, its diesel gensets losing edge over batteries and its parent’s 100 per cent owned subsidiary in India, said JM Financial. The brokerage said these concerns are overblown and ignore Cummins’ strong fundamentals. Shares of Cummins India ended up 7.2 per cent at Rs 353.45 on Thursday.


• ICICI Securities has upgraded City Union Bank to buy from add and cut target price to Rs 185 from Rs 235. The bank is well-placed to tide over Covid-19 related uncertainties with minimal impact on profitability, said ICICI Securities. The brokerage said City Union Bank would still deliver RoA of around 1.4 per cent in FY21/ FY22 even if it factors-in higher slippages and lower credit growth. Shares of City Union Bank ended up 5.1 per cent at Rs 129.80 on Thursday.