Cummins India Limited (CUMMINSIND) AI Stock Analysis

• Market Cap: ₹1.33T
• Dividend Yield: 1.14%
• Average Volume (3M): 11.88K
• Price to Earnings (P/E): 63.2
• Beta (1Y): 1.32
• Revenue Growth: 20.23%
• EPS Growth: 18.69%
• Country: IN
• Employees: 3,073
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 19.80
• 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: ₹4,401.00
• Price Target Upside: 6.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 85.21
• Revenue Forecast (FY): ₹119.45B

• Rating: 72 Outperform
• Price Target: ₹5,455.00 ▲(31.51% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 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

Consistent revenue & margin strength

Cummins India shows sustained revenue growth (Fundamentals.RevenueGrowth 13.31%) with robust gross and net margins per the income statement summary. This indicates durable operational efficiency and pricing power that support reinvestment, stable earnings and margin resilience over the medium term.

Healthy balance sheet, low leverage

A low debt-to-equity ratio and strong ROE reflect prudent leverage and efficient capital use. This financial strength provides flexibility to fund capex, R&D and working capital through cycles, reduces refinancing risk and supports sustained operations during downturns over the next several months.

Recurring aftermarket & service network

The company’s aftermarket parts, consumables and service contracts create recurring, higher-margin revenue tied to its installed base. A broad distribution and service network increases customer stickiness and predictable cash flows, softening cyclicality in genset and engine new-sales environments.

Negative Factors

Cyclical end-market exposure

Sales are materially linked to industrial, infrastructure and OEM production cycles, meaning demand can fluctuate significantly with capex slowdowns. Such cyclicality can cause multi-quarter revenue and margin variability, complicating capacity utilization and medium-term planning for investments.

Regulatory-driven upgrade cost pressure

Evolving emissions and noise regulations force continuous product updates and potential retrofits. Compliance demands can raise R&D and product development spending and compress near-term margins if costs cannot be fully passed to customers, creating sustained investment requirements across cycles.

Dependence on Cummins Inc for tech/platforms

Reliance on parent-company technology, branding and global platforms limits strategic autonomy and exposes the firm to shifts in parent priorities or licensing terms. Such dependence can constrain differentiation and introduce execution risks if global platform strategies change over the medium term.

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 across all verticals. The income statement demonstrates substantial growth and profitability, the balance sheet reflects stability with low leverage, and cash flow analysis indicates robust cash generation capabilities. While the company shows a few areas for improvement, such as maintaining growth momentum, it is well-positioned with a healthy financial structure and efficient operational management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 4148.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4148 is below the 20-day moving average (MA) of 4636.23, below the 50-day MA of 4351.56, and above the 200-day MA of 3945.71, indicating a bullish trend. The MACD of 152.80 indicates Positive momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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	72 Outperform	₹1.33T	63.22	―	1.14%	20.23%	18.69%
ABB	72 Outperform	₹1.26T	65.67	―	0.83%	12.35%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BHEL	58 Neutral	₹894.54B	64.16	―	0.18%	13.30%	137.07%
ISGEC	58 Neutral	₹64.90B	24.01	―	0.59%	-4.14%	-35.66%
THERMAX	58 Neutral	₹365.88B	41.70	―	0.48%	3.37%	-19.95%
SIEMENS	57 Neutral	₹1.15T	98.35	―	0.38%	-21.92%	-22.52%