Cummins India Limited (CUMMINSIND) AI Stock Analysis

• Market Cap: ₹1.14T
• Dividend Yield: 1.26%
• Average Volume (3M): 16.52K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 1.13
• Revenue Growth: 20.71%
• EPS Growth: 17.04%
• Country: IN
• Employees: 3,073
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 20.10
• Shares Outstanding: 277,200,000
• 10 Day Avg. Volume: 9,648
• 30 Day Avg. Volume: 16,517
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹3,668.00
• Price Target Upside: -10.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: ₹3,816.00 ▼(-6.96% Downside)

Cummins India Limited's overall stock score is driven primarily by its strong financial performance and favorable technical indicators. However, the relatively high valuation poses a risk. While the stock shows robust growth and stability, investors should be cautious of potential overvaluation.

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 Limited generates revenue primarily through the manufacturing and sale of diesel and natural gas engines, power generators, and related components and technologies. The company serves multiple industries, including automotive, construction, mining, and power generation, providing customized power solutions. Revenue streams include direct sales to original equipment manufacturers (OEMs), aftermarket sales, and service contracts for maintenance and support. Strategic partnerships and collaborations with other industry leaders enhance its market reach and technological capabilities, further contributing to its earnings. The company's focus on sustainability and innovation helps maintain a competitive edge in the market, attracting a broad customer base seeking efficient and reliable power solutions.

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 2023	Dec 2022	Dec 2022	Dec 2020
Income Statement
Total Revenue	101.95B	103.91B	88.60B	60.57B	76.41B	42.87B
Gross Profit	34.24B	28.13B	29.29B	18.37B	24.19B	14.38B
EBITDA	26.23B	25.27B	20.94B	12.17B	14.95B	8.09B
Net Income	20.09B	20.00B	17.21B	9.34B	12.28B	6.35B
Balance Sheet
Total Assets	0.00	101.68B	89.71B	71.12B	79.19B	59.56B
Cash, Cash Equivalents and Short-Term Investments	28.02B	34.42B	26.91B	19.98B	24.77B	12.94B
Total Debt	0.00	296.60M	1.27B	4.18B	3.76B	397.10M
Total Liabilities	-69.67B	26.07B	23.58B	19.67B	21.60B	13.05B
Stockholders Equity	69.67B	75.61B	66.12B	51.45B	57.58B	46.51B
Cash Flow
Free Cash Flow	0.00	17.90B	9.97B	5.60B	6.58B	6.72B
Operating Cash Flow	0.00	20.28B	12.85B	7.12B	8.20B	7.89B
Investing Cash Flow	0.00	-9.31B	-2.68B	-5.86B	691.50M	154.50M
Financing Cash Flow	0.00	-11.62B	-11.34B	-822.50M	-6.87B	-8.73B

Cummins India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4101.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 4101.35 is above the 20-day moving average (MA) of 3955.68, above the 50-day MA of 3753.83, and above the 200-day MA of 3213.27, indicating a bullish trend. The MACD of 104.55 indicates Negative momentum. The RSI at 73.70 is Negative, neither overbought nor oversold. The STOCH value of 88.20 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIEMENS	74 Outperform	1.18T	48.30	17.69%	0.36%	-13.58%	-0.28%
CUMMINSIND	72 Outperform	₹1.14T	53.42		1.26%	20.71%	17.04%
THERMAX	64 Neutral	394.69B	55.60	12.85%	0.42%	8.14%	-4.46%
ABB	61 Neutral	1.14T	63.58	26.45%	0.80%	10.27%	11.90%
ISGEC	60 Neutral	72.75B	30.83	9.10%	0.51%	-2.31%	-8.69%
BHEL	58 Neutral	815.67B	281.45	2.16%	0.21%	16.28%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Cummins India Limited Corporate Events

Cummins India Ensures Compliance with SEBI Regulations

Cummins India Limited has submitted a certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending June 30, 2025. This certificate, provided by MUFG Intime India Private Limited, confirms the dematerialization of securities and their listing on stock exchanges, ensuring compliance with regulatory requirements and maintaining transparency for stakeholders.