⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CUMMINSIND - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | CUMMINSIND | Market Cap | 1,15,656 Cr. | Current Price | 4,170 ₹ | High / Low | 4,615 ₹ |
| Stock P/E | 51.9 | Book Value | 265 ₹ | Dividend Yield | 1.24 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,187 ₹ | DMA 200 | 3,899 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -1.13 % | PAT Qtr | 638 Cr. | PAT Prev Qtr | 555 Cr. |
| RSI | 52.0 | MACD | -58.2 | Volume | 6,97,709 | Avg Vol 1Wk | 5,85,415 |
| Low price | 2,580 ₹ | High price | 4,615 ₹ | PEG Ratio | 1.47 | Debt to equity | 0.00 |
| 52w Index | 78.1 % | Qtr Profit Var | 41.5 % | EPS | 81.6 ₹ | Industry PE | 36.1 |
📊 Cummins India (CUMMINSIND) shows strong fundamentals and profit growth but faces high valuation and weak short-term technical momentum. It is a moderately good candidate for swing trading with cautious positioning.
✅ Optimal Entry Price: 4,100–4,150 ₹ (near support and slightly below 50 DMA)
🚪 Exit Strategy if Holding: Consider exiting near 4,350–4,400 ₹ (short-term resistance zone) or if RSI moves above 60.
Positive
- 💡 Strong ROCE (37.6%) and ROE (28.8%) indicate excellent efficiency.
- 📈 EPS of 81.6 ₹ supports earnings strength.
- 🏦 Debt-free balance sheet (Debt-to-equity: 0.00) ensures financial stability.
- 📊 Quarterly PAT growth from 555 Cr. to 638 Cr. (+41.5%) shows robust performance.
- 📈 Increase in FII holdings (+1.07%) reflects foreign investor confidence.
Limitation
- ⚠️ High P/E (51.9) compared to industry average (36.1), suggesting premium valuation.
- 📉 MACD (-58.2) signals weak momentum despite strong fundamentals.
- 🔻 DII holdings decreased (-1.13%), showing reduced domestic institutional support.
- 📊 Dividend yield of 1.24% is modest compared to peers.
Company Negative News
- 📉 Decline in DII holdings (-1.13%) indicates cautious stance from domestic institutions.
- 📊 High valuation may limit upside potential in the short term.
Company Positive News
- 📈 Strong quarterly profit growth (+41.5%) highlights operational strength.
- 📊 Increase in FII holdings (+1.07%) shows growing foreign investor trust.
Industry
- 🏭 Industry P/E at 36.1 is lower than Cummins’ 51.9, suggesting overvaluation compared to peers.
- 📈 Engineering and capital goods sector remains strong, supported by infrastructure and industrial demand.
Conclusion
🔎 Cummins India is fundamentally robust but technically weak in the short term. Swing traders may enter near 4,100–4,150 ₹ and exit near 4,350–4,400 ₹. Monitoring RSI and MACD is crucial, as momentum indicators suggest limited upside unless a reversal occurs.