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CUMMINSIND - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.2
| Stock Code | CUMMINSIND | Market Cap | 1,22,162 Cr. | Current Price | 4,407 ₹ | High / Low | 4,615 ₹ |
| Stock P/E | 54.8 | Book Value | 265 ₹ | Dividend Yield | 1.17 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,318 ₹ | DMA 200 | 3,801 ₹ |
| Chg in FII Hold | 0.85 % | Chg in DII Hold | -0.80 % | PAT Qtr | 638 Cr. | PAT Prev Qtr | 555 Cr. |
| RSI | 46.5 | MACD | 51.4 | Volume | 5,26,684 | Avg Vol 1Wk | 3,52,046 |
| Low price | 2,580 ₹ | High price | 4,615 ₹ | PEG Ratio | 1.55 | Debt to equity | 0.00 |
| 52w Index | 89.8 % | Qtr Profit Var | 41.5 % | EPS | 81.6 ₹ | Industry PE | 39.1 |
📊 Core Financials
- Revenue & Profitability: PAT rose to 638 Cr. from 555 Cr., showing strong 41.5% quarterly profit growth.
- Margins: ROE at 28.8% and ROCE at 37.6% reflect excellent efficiency and profitability.
- Debt Ratios: Debt-to-equity is 0.00 — debt-free balance sheet ensures financial strength.
- Cash Flows: Dividend yield of 1.17% provides shareholder returns while retaining growth capital.
💹 Valuation Indicators
- P/E Ratio: 54.8 vs Industry PE of 39.1 — slightly overvalued compared to peers.
- P/B Ratio: Current Price 4,407 ₹ / Book Value 265 ₹ ≈ 16.6, premium valuation.
- PEG Ratio: 1.55 — reasonable growth-adjusted valuation.
- Intrinsic Value: Strong fundamentals justify premium pricing, though valuation is stretched.
🏢 Business Model & Competitive Advantage
- Operates in power solutions, engines, and industrial equipment with global brand recognition.
- Competitive advantage lies in technology leadership, diversified product portfolio, and debt-free structure.
- FII holdings increased (+0.85%), showing foreign investor confidence, though DII reduced (-0.80%).
📈 Technical & Entry Zone
- DMA 50: 4,318 ₹ | DMA 200: 3,801 ₹ — stock trading above long-term support.
- RSI: 46.5 — neutral zone, not overbought.
- MACD: 51.4 — bullish momentum.
- Entry Zone: Attractive near 3,800–4,000 ₹ for accumulation.
- Long-Term Holding: Strong candidate for long-term portfolio given debt-free status and high return ratios.
✅ Positive
- Strong quarterly profit growth (+41.5%).
- Excellent ROE (28.8%) and ROCE (37.6%).
- Debt-free balance sheet ensures financial resilience.
⚠️ Limitation
- High P/E ratio (54.8) compared to industry average.
- P/B ratio of 16.6 indicates premium valuation.
- DII holdings reduced (-0.80%), showing weaker domestic institutional sentiment.
📉 Company Negative News
- Stock trading at premium valuations, limiting upside potential.
- Domestic institutional investors reduced stake (-0.80%).
📈 Company Positive News
- Quarterly PAT growth from 555 Cr. to 638 Cr.
- FII holdings increased (+0.85%), reflecting foreign investor confidence.
🏭 Industry
- Industry PE at 39.1 — sector trades at moderate valuations.
- Industrial equipment and power solutions industry benefits from infrastructure growth and global demand.
🔎 Conclusion
CUMMINSIND is a fundamentally strong company with excellent profitability, debt-free balance sheet, and global brand strength. While valuations are stretched, the company’s growth and efficiency justify a premium. Entry is attractive near 3,800–4,000 ₹, and it remains a solid long-term holding for investors seeking stability and consistent returns.
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