CUMMINSIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | CUMMINSIND | Market Cap | 1,30,873 Cr. | Current Price | 4,723 ₹ | High / Low | 4,987 ₹ |
| Stock P/E | 57.8 | Book Value | 265 ₹ | Dividend Yield | 1.09 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,525 ₹ | DMA 200 | 4,093 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -1.13 % | PAT Qtr | 548 Cr. | PAT Prev Qtr | 638 Cr. |
| RSI | 54.4 | MACD | 53.3 | Volume | 8,04,325 | Avg Vol 1Wk | 9,76,950 |
| Low price | 2,580 ₹ | High price | 4,987 ₹ | PEG Ratio | 1.64 | Debt to equity | 0.00 |
| 52w Index | 89.0 % | Qtr Profit Var | 6.71 % | EPS | 79.4 ₹ | Industry PE | 35.8 |
📊 Chart & Trend Analysis: CUMMINSIND is trading at ₹4,723, above both its 50 DMA (₹4,525) and 200 DMA (₹4,093), indicating strong bullish momentum. RSI at 54.4 suggests neutral-to-positive strength, not overbought. MACD at 53.3 confirms positive momentum. Bollinger Bands show price near the upper band, with support around ₹4,525 and resistance near ₹4,987.
📈 Momentum Signals: Current volume (8.04 lakh) is slightly below the 1-week average (9.76 lakh), showing moderate participation. Positive MACD and RSI above 50 reinforce bullish bias, though reduced volume suggests cautious optimism.
💡 Entry Zone: Optimal entry around ₹4,600–4,700 (near support).
🚪 Exit Zone: Resistance seen at ₹4,987 (recent high). Profit booking advised near this level.
🔎 Trend Status: The stock is currently trending upward with bullish bias. Sustained trade above ₹4,987 would confirm breakout continuation.
Positive
- Strong ROCE (37.6%) and ROE (28.8%) reflect excellent capital efficiency.
- Debt-free balance sheet ensures financial stability.
- EPS of ₹79.4 supports earnings visibility.
- 52-week index gain of 89% highlights long-term strength.
Limitation
- High P/E (57.8) compared to industry average (35.8) suggests overvaluation.
- Quarterly PAT decline (₹548 Cr vs ₹638 Cr) indicates short-term earnings pressure.
- Volume slightly below average, showing reduced participation in recent sessions.
Company Negative News
- Decline in quarterly profit despite strong fundamentals.
- DII holding decreased (-1.13%), showing reduced domestic institutional support.
Company Positive News
- FII holding increased (+1.07%), reflecting foreign investor confidence.
- Quarterly profit variation (+6.71% YoY) indicates resilience despite sequential decline.
Industry
- Industry P/E at 35.8 is lower than CUMMINSIND’s P/E, suggesting peers may be more attractively valued.
- Industrial machinery and power solutions sector remains strong, supported by infrastructure and manufacturing demand.
Conclusion
⚖️ CUMMINSIND shows strong fundamentals (debt-free, high ROE/ROCE) and bullish technical momentum. Short-term trend is upward, with support near ₹4,600–4,700 and resistance at ₹4,987. Long-term investors may hold for sector strength and consistent performance, while traders can look for breakout opportunities above ₹4,987 for further upside.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing CUMMINSIND with ABB India, Siemens, and Thermax) to highlight relative strength and sector rotation opportunities?