CUMMINSIND - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.2
| Stock Code | CUMMINSIND | Market Cap | 1,62,305 Cr. | Current Price | 5,855 ₹ | High / Low | 6,143 ₹ |
| Stock P/E | 68.5 | Book Value | 285 ₹ | Dividend Yield | 1.13 % | ROCE | 41.6 % |
| ROE | 31.8 % | Face Value | 2.00 ₹ | DMA 50 | 5,407 ₹ | DMA 200 | 4,656 ₹ |
| Chg in FII Hold | 1.35 % | Chg in DII Hold | -1.17 % | PAT Qtr | 625 Cr. | PAT Prev Qtr | 548 Cr. |
| RSI | 63.6 | MACD | 123 | Volume | 3,37,664 | Avg Vol 1Wk | 3,48,189 |
| Low price | 3,212 ₹ | High price | 6,143 ₹ | PEG Ratio | 2.37 | Debt to equity | 0.00 |
| 52w Index | 90.2 % | Qtr Profit Var | 20.0 % | EPS | 84.1 ₹ | Industry PE | 45.4 |
Cummins India shows strong fundamentals with excellent ROCE and ROE, zero debt, and consistent profit growth. Technically, the stock is trading well above its 50 DMA and 200 DMA, with RSI at 63.6 and MACD positive, indicating bullish momentum. However, the high P/E ratio compared to industry average and elevated PEG ratio suggest valuation concerns. Overall, it is a strong candidate for swing trading with good upside potential.
💡 Optimal Entry Price: Around 5,600–5,700 ₹ (near support levels close to DMA 50).
📈 Exit Strategy: If already holding, consider booking profits near 6,100–6,150 ₹ (recent highs) or exit if price falls below 5,400 ₹ (DMA 50 support).
✅ Positive
- 📈 Strong ROCE at 41.6% and ROE at 31.8% show excellent efficiency.
- 💰 Zero debt-to-equity ratio ensures financial stability.
- 📊 PAT growth from 548 Cr. to 625 Cr. (+20%) quarter-on-quarter.
- 📉 Price trading above DMA 50 and DMA 200, confirming bullish trend.
⚠️ Limitation
- 📉 High P/E ratio of 68.5 compared to industry average of 45.4.
- 📉 Elevated PEG ratio at 2.37 suggests valuation concerns relative to growth.
- 📉 Dividend yield at 1.13% is modest.
📰 Company Negative News
- 📉 Decline in DII holding (-1.17%) shows reduced domestic institutional support.
🌟 Company Positive News
- 📈 Increase in FII holding (+1.35%) signals strong foreign investor confidence.
- 📊 Consistent quarterly profit growth boosts investor sentiment.
🏭 Industry
- 📊 Industry P/E at 45.4, lower than Cummins’ 68.5, suggesting sector is moderately valued while the stock is expensive.
- 📈 Capital goods and engineering industry remains robust with infrastructure demand driving growth.
📌 Conclusion
Cummins India presents a strong swing trade opportunity. Excellent fundamentals, zero debt, and bullish technicals make it attractive, though high valuation requires caution. Entry is favorable near 5,600–5,700 ₹, with profit booking advised around 6,100–6,150 ₹. Risk management is essential due to valuation premium.