CUMMINSIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | CUMMINSIND | Market Cap | 1,45,985 Cr. | Current Price | 5,266 ₹ | High / Low | 5,325 ₹ |
| Stock P/E | 64.5 | Book Value | 265 ₹ | Dividend Yield | 0.98 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,836 ₹ | DMA 200 | 4,293 ₹ |
| Chg in FII Hold | 1.35 % | Chg in DII Hold | -1.17 % | PAT Qtr | 548 Cr. | PAT Prev Qtr | 638 Cr. |
| RSI | 64.8 | MACD | 156 | Volume | 4,58,759 | Avg Vol 1Wk | 4,36,715 |
| Low price | 2,702 ₹ | High price | 5,325 ₹ | PEG Ratio | 1.83 | Debt to equity | 0.00 |
| 52w Index | 97.8 % | Qtr Profit Var | 6.71 % | EPS | 79.4 ₹ | Industry PE | 39.3 |
📊 Cummins India (CUMMINSIND) demonstrates strong fundamentals with excellent ROE (28.8%) and ROCE (37.6%), supported by zero debt-to-equity, ensuring financial resilience. EPS of ₹79.4 reflects robust earnings power, and dividend yield of 0.98% adds shareholder value. Quarterly PAT (548 Cr vs 638 Cr) shows slight decline, but overall profitability remains strong. Valuation is stretched with P/E (64.5) compared to industry average (39.3), though PEG ratio (1.83) suggests moderate growth-adjusted value. Technicals remain bullish with RSI (64.8) and MACD (156), supported by strong volume trends.
🎯 Entry Zone: 4,950 ₹ – 5,000 ₹ (near 50 DMA support)
📌 Long-Term Holding: Suitable for 2–3 year horizon. Strong fundamentals justify accumulation, though valuations warrant cautious exposure. Upside potential exists toward 5,300–5,400 ₹, with partial profit booking advisable on overbought signals.
Positive
- High ROE (28.8%) and ROCE (37.6%) reflect superior efficiency.
- Zero debt ensures strong financial stability.
- EPS of ₹79.4 supports earnings visibility.
- FII holdings increased (+1.35%), showing foreign investor confidence.
Limitation
- High P/E (64.5) compared to industry average (39.3).
- Quarterly PAT decline (638 Cr → 548 Cr).
- DII holdings decreased (-1.17%), showing reduced domestic institutional support.
- Valuation risks may cap upside in near term.
Company Negative News
- No major negative news reported; valuation and earnings moderation remain concerns.
Company Positive News
- Strong efficiency metrics with zero debt.
- FII inflows highlight foreign investor confidence.
- Technical indicators (RSI, MACD) show bullish momentum.
Industry
- Industry P/E at 39.3 is lower than Cummins’ P/E (64.5), indicating premium valuation.
- Industrial equipment sector remains resilient, supported by infrastructure and manufacturing demand.
Conclusion
⚡ Cummins India is fundamentally strong with superior efficiency and zero debt. Entry around 4,950–5,000 ₹ offers favorable risk-reward. Long-term holding is justified with cautious accumulation, though valuations warrant discipline. Partial profit booking near 5,300–5,400 ₹ is advisable, with exit below 4,800 ₹ on heavy volume.
This structured HTML report captures Cummins India’s strong fundamentals alongside its valuation risks. If you’d like, I can extend this into a peer benchmarking overlay against other industrial equipment companies like ABB India or Siemens to highlight relative positioning. Would you like me to prepare that next?