CUMMINSIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | CUMMINSIND | Market Cap | 1,24,895 Cr. | Current Price | 4,506 ₹ | High / Low | 4,987 ₹ |
| Stock P/E | 55.2 | Book Value | 265 ₹ | Dividend Yield | 1.14 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,524 ₹ | DMA 200 | 4,097 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -1.13 % | PAT Qtr | 548 Cr. | PAT Prev Qtr | 638 Cr. |
| RSI | 45.2 | MACD | 35.0 | Volume | 5,91,716 | Avg Vol 1Wk | 8,80,313 |
| Low price | 2,580 ₹ | High price | 4,987 ₹ | PEG Ratio | 1.56 | Debt to equity | 0.00 |
| 52w Index | 80.0 % | Qtr Profit Var | 6.71 % | EPS | 79.4 ₹ | Industry PE | 34.3 |
📊 Cummins India (CUMMINSIND) has strong fundamentals with high ROCE (37.6%) and ROE (28.8%), debt-free balance sheet, and solid EPS (₹79.4). Technical indicators show moderate strength (RSI 45.2, MACD positive at 35.0, price near 50 DMA). This makes it a reasonably good candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around ₹4,450–4,500, close to support levels.
📈 Exit Strategy (if already holding): Consider exiting near ₹4,750–4,850 if momentum continues, or cut losses if price falls below ₹4,400 decisively.
Positive
- Strong ROCE (37.6%) and ROE (28.8%) indicate excellent capital efficiency.
- Debt-free balance sheet (Debt-to-equity 0.00).
- EPS of ₹79.4 reflects robust earnings power.
- PEG ratio of 1.56 suggests reasonable valuation relative to growth.
- 52-week performance (+80%) shows strong long-term momentum.
Limitation
- High P/E (55.2) compared to industry average (34.3), indicating premium valuation.
- PAT declined from ₹638 Cr. to ₹548 Cr., showing earnings pressure.
- Price is slightly below 50 DMA (4,524), suggesting near-term weakness.
- Trading volume lower than average, indicating reduced liquidity in short term.
Company Negative News
- DII holdings decreased (-1.13%), showing reduced domestic institutional confidence.
- Sequential PAT decline highlights short-term profitability concerns.
Company Positive News
- FII holdings increased (+1.07%), reflecting foreign investor confidence.
- Quarterly profit variation (+6.71%) shows resilience despite decline in absolute PAT.
Industry
- Industry P/E at 34.3 is lower than Cummins India’s, suggesting the stock trades at a premium.
- Industrial and engineering sector remains strong, supported by infrastructure and manufacturing growth in India.
Conclusion
⚖️ Cummins India is fundamentally strong with excellent efficiency ratios and debt-free status. While valuation is high and recent profits have declined, technical indicators show moderate strength. Swing traders may enter near support (~₹4,450–4,500) and exit near resistance (~₹4,750–4,850). Risk management is advised due to premium valuation and earnings pressure.