ScoreWhy is Cummins India Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.75%
- Healthy long term growth as Net Sales has grown by an annual rate of 22.73% and Operating profit at 39.42%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 13-Mar-26 and has generated 26.04% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band and KST
3
High Institutional Holdings at 40.33%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Market Beating performance in long term as well as near term
- Along with generating 78.71% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Cummins India should be less than 10%
- Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cummins India for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Cummins India
78.86%
2.81
28.06%
Sensex
-4.88%
-0.39
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.73%
EBIT Growth (5y)
39.42%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.14
Net Debt to Equity (avg)
-0.46
Sales to Capital Employed (avg)
1.30
Tax Ratio
23.47%
Dividend Payout Ratio
71.38%
Pledged Shares
0
Institutional Holding
40.33%
ROCE (avg)
36.07%
ROE (avg)
23.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
66
Industry P/E
58
Price to Book Value
19.03
EV to EBIT
65.70
EV to EBITDA
60.67
EV to Capital Employed
34.31
EV to Sales
12.96
PEG Ratio
3.12
Dividend Yield
0.92%
ROCE (Latest)
52.22%
ROE (Latest)
28.62%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
PAT(Q)
Highest at Rs 624.80 cr.
EPS(Q)
Highest at Rs 23.43
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Cummins India
Profit After Tax (PAT) - Quarterly
Highest at Rs 624.80 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 23.43
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Cummins India
Non Operating Income - Quarterly
Highest at Rs 144.71 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
