CUMMINSIND - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.2

📊 CUMMINSIND shows strong potential for swing trading. Current price (₹4,407) is above both 50 DMA (₹4,318) and 200 DMA (₹3,801), reflecting bullish momentum. RSI at 46.5 is neutral, while MACD at 51.4 indicates positive trend continuation. Fundamentals are robust with ROCE (37.6%) and ROE (28.8%), supported by zero debt. Optimal entry would be near ₹4,300–₹4,350 on dips. If already holding, exit near ₹4,600 resistance unless momentum continues with higher volume.

✅ Positive

• 📈 Strong ROCE (37.6%) and ROE (28.8%) show excellent efficiency
• 💰 Dividend yield at 1.17% adds investor appeal
• 📊 PAT growth from ₹555 Cr. to ₹638 Cr. (+41.5%)
• 📉 Zero debt-to-equity ensures financial stability
• 📈 EPS at ₹81.6 supports valuation strength

⚠️ Limitation

• 📉 P/E ratio (54.8) higher than industry average (39.1)
• 📊 RSI at 46.5 indicates limited upside momentum
• ⚠️ DII holding decreased (-0.80%)

🚨 Company Negative News

• 📉 Valuation stretched compared to industry peers
• ⚠️ Domestic institutional investors reducing stake

🌟 Company Positive News

• 📈 Strong quarterly profit growth (+41.5%)
• 📊 FII holding increased (+0.85%)
• 📉 Debt-free balance sheet strengthens outlook

🏭 Industry

• 📊 Industry P/E at 39.1, lower than company’s 54.8
• 📈 Capital goods sector showing strong demand cycle

📌 Conclusion

⚖️ CUMMINSIND is a good swing trade candidate with strong fundamentals and bullish technicals. Entry is favorable near ₹4,300–₹4,350 on dips. For existing holders, exit near ₹4,600 resistance is advisable unless volume and momentum continue to strengthen.

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