Cummins India Limited (IN:CUMMINSIND)
:CUMMINSIND
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Cummins India Limited
(CUMMINSIND)
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Rating:72Outperform
Price Target:
₹5,806.00
▲(39.97% Upside)
Action:ReiteratedDate:11/30/25
Cummins India Limited's strong financial performance is the most significant factor driving the overall score, supported by solid revenue growth and profitability. Technical analysis shows a positive trend, although caution is advised due to potential overbought conditions. The high P/E ratio suggests the stock may be overvalued, which impacts the valuation score negatively. Overall, the stock is well-positioned financially but may face valuation challenges.
Positive Factors
Recurring aftermarket and service revenue
A sizable recurring aftermarket and service business provides durable revenue and margin support independent of new-equipment cycles. Installed-base servicing yields predictable cash flows, higher lifetime customer value, and defensive revenue in downturns, strengthening long-term cash generation and valuation resilience.
Negative Factors
Cyclical end-market exposure
Heavy exposure to industrial and infrastructure capex cycles makes revenue and equipment orders sensitive to macro and sector-specific downturns. This cyclical demand profile can produce multi-quarter volatility in new equipment sales, pressuring capacity utilization and near-term margin leverage even if aftermarket revenue cushions some impact.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket and service revenue
A sizable recurring aftermarket and service business provides durable revenue and margin support independent of new-equipment cycles. Installed-base servicing yields predictable cash flows, higher lifetime customer value, and defensive revenue in downturns, strengthening long-term cash generation and valuation resilience.
Read all positive factors
Cummins India Limited (CUMMINSIND) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.45T
Dividend Yield1.14%
Average Volume (3M)11.88K
Price to Earnings (P/E)63.2
Beta (1Y)1.25
Revenue Growth13.31%
EPS Growth11.57%
CountryIN
Employees3,073
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)20.00
Shares Outstanding277,200,000
10 Day Avg. Volume4,324
30 Day Avg. Volume11,882
Financial Highlights & Ratios
PEG Ratio2.57
Price to Book (P/B)11.03
Price to Sales (P/S)8.03
P/FCF Ratio46.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹4,401.00Price Target Upside6.10% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)96.38
Revenue Forecast (FY)₹137.97B
Cummins India Limited Business Overview & Revenue Model
Company Description
Cummins India Limited designs, manufactures, distributes, and services engines, generator sets, and related technologies in India. The company operates through three business units: Engine Business, Power Systems Business, and Distribution Busines...
How the Company Makes Money
Cummins India Limited makes money primarily by selling power equipment and by earning recurring revenue from servicing that installed base. Key revenue streams include: (1) Sale of generator sets and power generation systems: The company manufactu...
Cummins India Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 116.44B | 103.91B | 90.00B | 77.72B | 61.71B | 43.60B |
| Gross Profit | 39.41B | 37.45B | 31.79B | 25.05B | 20.26B | 15.67B |
| EBITDA | 26.88B | 22.85B | 19.57B | 14.14B | 10.29B | 7.67B |
| Net Income | 23.14B | 20.00B | 17.21B | 12.28B | 9.34B | 6.35B |
Balance Sheet | ||||||
| Total Assets | 105.40B | 101.68B | 89.71B | 79.19B | 71.12B | 59.56B |
| Cash, Cash Equivalents and Short-Term Investments | 33.65B | 34.42B | 26.91B | 24.40B | 22.06B | 13.66B |
| Total Debt | 415.80M | 296.60M | 1.27B | 3.76B | 4.18B | 397.10M |
| Total Liabilities | 26.45B | 26.07B | 23.58B | 21.60B | 19.67B | 13.05B |
| Stockholders Equity | 78.95B | 75.61B | 66.12B | 57.58B | 51.45B | 46.51B |
Cash Flow | ||||||
| Free Cash Flow | 6.31B | 17.90B | 9.97B | 6.58B | 5.60B | 6.72B |
| Operating Cash Flow | 7.42B | 20.28B | 12.85B | 8.20B | 7.12B | 7.89B |
| Investing Cash Flow | 1.66B | -9.31B | -2.68B | 691.50M | -5.86B | 154.50M |
| Financing Cash Flow | -9.35B | -11.62B | -11.34B | -6.87B | -822.50M | -8.73B |
Cummins India Limited Technical Analysis
Positive
4148.00
Price Trends
4659.92
Positive
4473.33
Positive
4157.63
Positive
Market Momentum
120.29
Negative
64.29
Neutral
84.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CUMMINSIND, the sentiment is Positive. The current price of 4148 is below the 20-day moving average (MA) of 4752.25, below the 50-day MA of 4659.92, and below the 200-day MA of 4157.63, indicating a bullish trend. The MACD of 120.29 indicates Negative momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CUMMINSIND.
Cummins India Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹1.45T | 63.22 | ― | 1.14% | 13.31% | 11.57% | |
72 Outperform | ₹1.55T | 63.26 | ― | 0.83% | 8.32% | -10.87% | |
70 Outperform | ₹477.49B | 41.70 | ― | 0.48% | 2.74% | 10.15% | |
67 Neutral | ₹77.69B | 24.01 | ― | 0.59% | -0.51% | -4.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ₹1.17T | 64.16 | ― | 0.18% | 10.36% | 56.87% | |
57 Neutral | ₹1.36T | 98.35 | ― | 0.38% | ― | ― |
* Industrials Sector Average
IN:CUMMINSIND
Cummins India Limited
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Cummins India Limited Corporate Events
Cummins India Opens One-Year Special Window for Legacy Physical Share Transfers
Apr 14, 2026
Cummins India Limited has announced, via newspaper advertisements in Business Standard and Loksatta, the launch of its Second 100 Days Campaign titled ‘Saksham Niveshak’ and the opening of a special window for transfer and dematerializ...
Cummins India Withholds Interim Dividend for KYC-Non-Compliant Shareholders
Apr 2, 2026
Cummins India has notified stock exchanges that it is withholding payment of its interim dividend for FY 2025-26 to shareholders whose folios are non-compliant with SEBI’s updated KYC requirements. Affected investors have been individually i...
Cummins India contests rectification tax demands totaling Rs 45.8 crore
Mar 31, 2026
Cummins India Limited has disclosed that it received two rectification orders from the Deputy Commissioner of Income Tax, Pune, under Section 155(18) of the Income-tax Act, 1961, raising demands of Rs 32.98 crore for FY 2018-19 and Rs 12.84 crore ...
Cummins India to Appeal Rs 105 Crore GST Demand and Penalty
Mar 29, 2026
Cummins India Limited has disclosed that the Additional Commissioner of CGST, Pune-II has raised a tax demand of Rs 52.56 crore and an equivalent penalty under Section 74 of the Central Goods and Services Tax Act for financial years 2019-20 to 202...
Cummins India Seeks Shareholder Nod via E-Voting on MD Pay Revision
Mar 18, 2026
Cummins India Limited has launched a postal ballot process to seek shareholder approval, via remote e-voting, for a revision in the remuneration of Managing Director Ms. Shveta Arya. The company is conducting the exercise entirely through electron...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.