Cummins India Limited (CUMMINSIND) AI Stock Analysis

• Market Cap: ₹1.14T
• Dividend Yield: 1.14%
• Average Volume (3M): 11.88K
• Price to Earnings (P/E): 49.2
• Beta (1Y): 1.29
• Revenue Growth: 20.23%
• EPS Growth: 18.69%
• Country: IN
• Employees: 3,073
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 23.00
• Shares Outstanding: 277,200,000
• 10 Day Avg. Volume: 4,324
• 30 Day Avg. Volume: 11,882
• PEG Ratio: 2.57
• Price to Book (P/B): 11.03
• Price to Sales (P/S): 8.03
• P/FCF Ratio: 46.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹4,973.00 ▲(19.89% Upside)

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

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, reinforcing the company's competitive position in the industry.

Cash Generation

Strong cash generation from operations enhances financial flexibility, allowing for reinvestment in growth opportunities and shareholder returns.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and supports long-term stability, enabling strategic investments.

Negative Factors

Valuation Concerns

High valuation metrics may limit future stock price appreciation and could lead to increased volatility if growth expectations are not met.

Growth Momentum

Challenges in sustaining growth momentum could impact long-term revenue expansion and market competitiveness if not addressed.

Dividend Yield

A lower dividend yield may reduce the stock's attractiveness to income-focused investors, potentially affecting demand and stock support.

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 Business. The Engine Business segment manufactures and markets diesel engines ranging from 50 HP to 600 HP for off-highway applications, as well as off-highway commercial equipment industry comprising construction and compressor. The Power Systems Business segment provides power generation systems in standby and distributed power generation for individual and institutional customers in various segments, such as infrastructure, manufacturing, data centers, rental, healthcare, and hospitality; and integrated power solutions for railways, mining, marine, pumps, oil and gas, and defense sectors, as well as manufactures and exports low kilowatt generator sets; and power generation systems including generator sets, paralleling controls, switchgears, transfer switches, and controls. The Distribution Business segment offers products, services, and solutions for equipment and engines; and provides after-market support services to customers in India, Nepal, and Bhutan. It also exports its products to the United States, Europe, Mexico, Africa, the Middle East, and China. The company was incorporated in 1962 and is headquartered in Pune, India. Cummins India Limited is a subsidiary of Cummins Inc.

How the Company Makes Money

Cummins India generates revenue primarily through the sale of its engines and power generation products, which are used in a wide range of applications including commercial vehicles, construction equipment, and industrial machinery. The company also earns significant income from aftermarket services and parts, which provide ongoing support to customers post-sale. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers), distribution through a network of dealers, and services related to maintenance and repair. Strategic partnerships with various industries, combined with a strong focus on research and development, further contribute to its earnings by allowing the company to innovate and adapt to market demands.

Cummins India Limited Financial Statement Overview

Summary

Cummins India Limited exhibits a strong financial position with robust revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow analysis indicates effective cash generation. Overall, the company is well-positioned with a healthy financial structure.

Income Statement

Cummins India Limited has demonstrated strong revenue growth, with a significant increase from the previous year. The Gross Profit Margin and Net Profit Margin have remained robust, indicating efficient cost management and profitability. The EBIT and EBITDA margins also reflect strong operational performance, highlighting the company's ability to generate earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet is solid with a low Debt-to-Equity Ratio, indicating prudent financial leverage. The Return on Equity is impressive, showcasing effective utilization of shareholder funds to generate profits. The Equity Ratio is healthy, suggesting strong equity backing relative to total assets. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow analysis reveals a positive trajectory with strong Free Cash Flow growth, indicative of effective cash generation from operations. The Operating Cash Flow to Net Income Ratio is favorable, suggesting efficient conversion of income to cash. The Free Cash Flow to Net Income Ratio is also strong, reinforcing the company's ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	109.82B	103.91B	90.00B	77.72B	61.71B	43.60B
Gross Profit	39.35B	37.45B	31.79B	25.05B	20.26B	15.67B
EBITDA	24.59B	22.85B	19.57B	14.14B	10.29B	7.67B
Net Income	21.41B	20.00B	17.21B	12.28B	9.34B	6.35B
Balance Sheet
Total Assets	0.00	101.68B	89.71B	79.19B	71.12B	59.56B
Cash, Cash Equivalents and Short-Term Investments	34.28B	34.42B	26.91B	24.40B	22.06B	13.66B
Total Debt	0.00	296.60M	1.27B	3.76B	4.18B	397.10M
Total Liabilities	-75.61B	26.07B	23.58B	21.60B	19.67B	13.05B
Stockholders Equity	75.61B	75.61B	66.12B	57.58B	51.45B	46.51B
Cash Flow
Free Cash Flow	0.00	17.90B	9.97B	6.58B	5.60B	6.72B
Operating Cash Flow	0.00	20.28B	12.85B	8.20B	7.12B	7.89B
Investing Cash Flow	0.00	-9.31B	-2.68B	691.50M	-5.86B	154.50M
Financing Cash Flow	0.00	-11.62B	-11.34B	-6.87B	-822.50M	-8.73B

Cummins India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4148.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CUMMINSIND, the sentiment is Negative. The current price of 4148 is below the 20-day moving average (MA) of 4354.11, below the 50-day MA of 4383.61, and above the 200-day MA of 3697.94, indicating a neutral trend. The MACD of -85.77 indicates Positive momentum. The RSI at 27.69 is Positive, neither overbought nor oversold. The STOCH value of 7.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CUMMINSIND.

Cummins India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUMMINSIND	72 Outperform	₹1.14T	49.25	―	1.14%	20.23%	18.69%
ABB	67 Neutral	₹1.08T	61.18	―	0.83%	12.35%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHEL	58 Neutral	₹956.52B	171.26	―	0.18%	13.30%	137.07%
ISGEC	58 Neutral	₹60.99B	32.55	―	0.59%	-4.14%	-35.66%
THERMAX	58 Neutral	₹360.19B	57.36	―	0.48%	3.37%	-19.95%
SIEMENS	57 Neutral	₹1.09T	51.56	―	0.38%	-21.92%	-22.52%

Cummins India Limited Corporate Events

Cummins India Limited Announces Proposed Postal Ballot

Cummins India Limited has announced a proposed postal ballot, as published in the Business Standard and Loksatta newspapers. This initiative involves e-voting and is aimed at engaging shareholders in decision-making processes, potentially impacting the company’s governance and stakeholder involvement.

Cummins India Releases Unaudited Financial Results for September 2025

Cummins India Limited has announced the publication of its unaudited standalone and consolidated financial results for the quarter and half year ending September 30, 2025. The results were published in the English newspaper Business Standard and the Marathi newspaper Loksatta. This announcement is part of the company’s compliance with SEBI regulations, reflecting its commitment to transparency and providing stakeholders with timely financial information.

Cummins India Schedules Conference Call for Q2 and H1 FY 2025-26 Financial Results

Cummins India Limited has announced a conference call scheduled for November 7, 2025, to discuss its unaudited financial results for the quarter and half-year ending September 30, 2025. This call will provide investors, analysts, and financial institutions with insights into the company’s business and financial performance, potentially impacting stakeholder perceptions and market positioning.