Cummins India Limited (CUMMINSIND) AI Stock Analysis

• Market Cap: ₹1.20T
• Dividend Yield: 1.2%
• Average Volume (3M): 11.88K
• Price to Earnings (P/E): 55.9
• Beta (1Y): 1.12
• Revenue Growth: 20.23%
• EPS Growth: 18.69%
• Country: IN
• Employees: 3,073
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 22.73
• 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: ₹3,911.67
• Price Target Upside: -8.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹4,480.00 ▲(4.33% Upside)

Cummins India Limited's strong financial performance is the most significant factor, supported by stable balance sheets and effective cash generation. Technical analysis indicates positive momentum, though valuation concerns due to a high P/E ratio slightly dampen the overall score.

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 growth and profitability reflected in the income statement. The balance sheet shows stability with low leverage, and cash flow analysis indicates effective cash generation. The company is in a healthy financial structure, although maintaining growth momentum is key.

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: Positive
• Last Price: 4294.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4294.05 is above the 20-day moving average (MA) of 4146.98, above the 50-day MA of 4037.33, and above the 200-day MA of 3343.80, indicating a bullish trend. The MACD of 103.89 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 62.01 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUMMINSIND	74 Outperform	₹1.20T	55.89	―	1.20%	20.23%	18.69%
SIEMENS	69 Neutral	₹1.11T	45.32	―	0.40%	-13.58%	-0.28%
THERMAX	68 Neutral	₹388.38B	54.72	―	0.44%	8.14%	-4.46%
ABB	67 Neutral	₹1.11T	61.85	―	0.86%	12.35%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHEL	58 Neutral	₹930.41B	166.58	―	0.19%	13.30%	137.07%
ISGEC	56 Neutral	₹64.82B	27.46	―	0.58%	-2.31%	-8.69%

Cummins India Limited Corporate Events

Cummins India Secures Shareholder Approval via Postal Ballot

Cummins India Limited has announced the successful passage of resolutions through a postal ballot, as confirmed by the scrutinizer’s report. This development indicates strong shareholder support and compliance with regulatory requirements, potentially strengthening the company’s governance and operational transparency.

Cummins India Announces Trading Window Closure Ahead of Financial Results

Cummins India Limited announced the closure of its trading window in compliance with SEBI regulations, ahead of its Board of Directors meeting scheduled for November 6, 2025. This meeting will review and approve the company’s unaudited financial results for the quarter and half-year ending September 30, 2025. The trading window will remain closed from October 1, 2025, until 48 hours after the results are communicated to the stock exchanges, impacting designated persons and their immediate relatives.

Cummins India Withholds Dividends Pending KYC Updates

Cummins India Limited has announced that dividends for shareholders holding shares in physical form will be withheld unless they update their KYC details as per SEBI regulations. This move, following the SEBI circular, aims to ensure compliance and streamline dividend payments through electronic mode, impacting shareholders who have not yet updated their information.

Cummins India Announces Special Window for Physical Share Transfers

Cummins India Limited has announced a reminder regarding a special window for the re-lodgment of transfer requests for physical shares, as published in major newspapers. This initiative is likely to impact shareholders by facilitating the transfer process of physical shares, potentially affecting the company’s stock liquidity and aligning with regulatory compliance.

Cummins India Launches ‘100 Days Campaign – Saksham Niveshak’

Cummins India Limited has announced a ‘100 Days Campaign – Saksham Niveshak’ through newspaper publications in English and Marathi. This initiative is aimed at engaging shareholders and stakeholders, potentially enhancing the company’s visibility and investor relations. The campaign reflects Cummins India’s commitment to transparency and active communication with its investors, which may positively impact its market positioning and stakeholder confidence.

Cummins India Seeks Shareholder Approval for New Director Appointments

Cummins India Limited has announced a postal ballot seeking shareholder approval for the appointment of two directors, Mr. Thierry Bruno Pimi Nouyeuwe as a Non-Executive and Non-Independent Director, and Ms. Vibha Paul Rishi as a Non-Executive and Independent Director. The voting will be conducted electronically, allowing shareholders to cast their votes through a remote e-voting system facilitated by MUFG Intime India Private Limited. This move is part of Cummins India’s ongoing efforts to strengthen its board and enhance corporate governance, potentially impacting its strategic direction and stakeholder engagement.

Cummins India Limited Schedules Investor Meetings to Enhance Transparency

Cummins India Limited has announced a schedule of meetings with investors, analysts, and financial institutions, including Citibank India, HDFC Securities Ltd., Goldman Sachs (India) Securities Private Limited, and Nomura Financial Advisory and Securities Private Limited. These interactions, set for September 9, 2025, will focus on publicly available information, ensuring no unpublished price-sensitive information is shared. This initiative reflects the company’s commitment to transparency and engagement with key stakeholders, potentially impacting its market perception and investor relations positively.