CUMMINSIND - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| 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 |
Analysis: Cummins India (CUMMINSIND) shows strong fundamentals with ROCE (37.6%) and ROE (28.8%), supported by a debt-free balance sheet. Current price (5,266 ₹) is near its 52-week high (5,325 ₹), reflecting strong momentum. RSI at 64.8 indicates mildly overbought conditions, while MACD (156) confirms bullish strength. The stock trades at a premium valuation with P/E of 64.5 compared to industry PE of 39.3, and PEG ratio of 1.83 suggests moderate growth potential. Quarterly PAT declined (548 Cr. vs 638 Cr.), but overall profit variation remains positive (6.71%). Technicals show strong support at DMA 50 (4,836 ₹) and DMA 200 (4,293 ₹).
Optimal Entry Price: Around 4,850–4,950 ₹ (near DMA 50 support).
Exit Strategy if Holding: Consider booking profits near 5,300–5,350 ₹ unless momentum sustains above 5,325 ₹ resistance.
✅ Positive
- Strong ROCE (37.6%) and ROE (28.8%).
- Debt-free balance sheet ensures financial stability.
- FII holdings increased (+1.35%), showing foreign investor confidence.
- Stock trading above DMA 50 and DMA 200 indicates bullish trend.
⚠️ Limitation
- High valuation with P/E of 64.5 compared to industry average.
- Quarterly PAT decline (548 Cr. vs 638 Cr.) raises caution.
- DII holdings decreased (-1.17%), showing reduced domestic interest.
- RSI at 64.8 suggests mildly overbought conditions.
📰 Company Negative News
- No major negative news reported, but premium valuation and profit decline are concerns.
🌟 Company Positive News
- Strong efficiency metrics (ROCE and ROE).
- Debt-free status enhances financial flexibility.
- Foreign institutional investors increased their stake.
🏭 Industry
- Industry P/E at 39.3 suggests Cummins trades at a premium.
- Industrial and engineering sector remains resilient with infrastructure demand.
📌 Conclusion
Cummins India is a strong candidate for swing trading. Entry around 4,850–4,950 ₹ offers a favorable risk-reward setup, while exit near 5,300–5,350 ₹ is advisable unless momentum sustains above 5,325 ₹. Strong fundamentals and debt-free status are positives, but premium valuation and recent profit decline warrant cautious optimism.
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