⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CUMMINSIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | CUMMINSIND | Market Cap | 1,30,873 Cr. | Current Price | 4,723 ₹ | High / Low | 4,987 ₹ |
| Stock P/E | 57.8 | Book Value | 265 ₹ | Dividend Yield | 1.09 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,525 ₹ | DMA 200 | 4,093 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -1.13 % | PAT Qtr | 548 Cr. | PAT Prev Qtr | 638 Cr. |
| RSI | 54.4 | MACD | 53.3 | Volume | 8,04,325 | Avg Vol 1Wk | 9,76,950 |
| Low price | 2,580 ₹ | High price | 4,987 ₹ | PEG Ratio | 1.64 | Debt to equity | 0.00 |
| 52w Index | 89.0 % | Qtr Profit Var | 6.71 % | EPS | 79.4 ₹ | Industry PE | 35.8 |
📊 Core Financials
- Revenue Growth: PAT declined (₹548 Cr vs ₹638 Cr), but overall growth trend remains positive
- Profit Margins: EPS ₹79.4, strong profitability
- Debt Ratio: Debt-free (Debt-to-Equity 0.00)
- Cash Flows: Healthy, supported by consistent profits
- Return Metrics: ROCE 37.6%, ROE 28.8% — excellent efficiency
💹 Valuation Indicators
- P/E Ratio: 57.8 (well above industry PE of 35.8, overvalued)
- P/B Ratio: ~17.8 (premium valuation)
- PEG Ratio: 1.64 (reasonable, growth moderately priced in)
- Intrinsic Value: Current price ₹4,723 is near upper band, cautious entry advised
🏢 Business Model & Competitive Advantage
- Global leader in power solutions and engines
- Strong brand recognition and diversified industrial presence
- Debt-free balance sheet enhances resilience
- Dividend yield of 1.09% adds shareholder value
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹4,400–₹4,600 range (near support levels)
- Long-Term Holding: Attractive due to strong ROE/ROCE and debt-free status
- Risk: Premium valuation may limit short-term upside
✅ Positive
- Debt-free company ensures strong financial stability
- High ROE and ROCE indicate excellent efficiency
- Strong global brand and diversified industrial exposure
⚠️ Limitation
- P/E ratio significantly higher than industry average
- P/B ratio reflects expensive valuation
- Quarterly PAT declined from ₹638 Cr to ₹548 Cr
📰 Company Negative News
- DII holdings decreased (-1.13%), showing reduced domestic investor confidence
- Stock trading near upper band, limiting entry opportunities
🌟 Company Positive News
- FII holdings increased (+1.07%), showing foreign investor confidence
- Strong EPS of ₹79.4 supports valuation
- Debt-free balance sheet enhances resilience
🏦 Industry
- Industrial and power solutions sector with strong global demand
- Industry PE at 35.8, CUMMINSIND trades above this, showing premium valuation
- Sector growth supported by infrastructure and energy expansion
🔎 Conclusion
- CUMMINSIND is financially strong with excellent ROE/ROCE and debt-free operations
- Valuation is premium compared to industry peers
- Entry near ₹4,400–₹4,600 is favorable for long-term investors
- Best suited for portfolios seeking global industrial exposure with moderate risk tolerance