CUMMINSIND - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | CUMMINSIND | Market Cap | 1,45,985 Cr. | Current Price | 5,266 ₹ | High / Low | 5,325 ₹ |
| Stock P/E | 64.5 | Book Value | 265 ₹ | Dividend Yield | 0.98 % | ROCE | 37.6 % |
| ROE | 28.8 % | Face Value | 2.00 ₹ | DMA 50 | 4,836 ₹ | DMA 200 | 4,293 ₹ |
| Chg in FII Hold | 1.35 % | Chg in DII Hold | -1.17 % | PAT Qtr | 548 Cr. | PAT Prev Qtr | 638 Cr. |
| RSI | 64.8 | MACD | 156 | Volume | 4,58,759 | Avg Vol 1Wk | 4,36,715 |
| Low price | 2,702 ₹ | High price | 5,325 ₹ | PEG Ratio | 1.83 | Debt to equity | 0.00 |
| 52w Index | 97.8 % | Qtr Profit Var | 6.71 % | EPS | 79.4 ₹ | Industry PE | 39.3 |
📊 CUMMINSIND is trading well above both its 50 DMA (4,836 ₹) and 200 DMA (4,293 ₹), confirming strong bullish momentum. RSI at 64.8 indicates moderately strong momentum, while MACD at 156 shows strong positive divergence. Current volume (4,58,759) is slightly above average (4,36,715), supporting the ongoing uptrend. Bollinger Bands suggest price near the upper band, signaling short-term resistance around 5,300–5,325 ₹.
🎯 Entry Zone: 5,050 ₹ – 5,100 ₹ (support near 50 DMA)
💰 Exit Zone: 5,280 ₹ – 5,325 ₹ (resistance band)
🔄 Trend Status: Trending upward with strong momentum; consolidation possible if RSI crosses 70 with weakening volume.
Positive
- Strong ROE (28.8%) and ROCE (37.6%) highlight excellent capital efficiency.
- Debt-free balance sheet ensures financial stability.
- EPS of 79.4 ₹ provides strong earnings visibility.
- Trading well above both 50 DMA and 200 DMA confirms bullish trend.
Limitation
- High P/E (64.5) compared to industry PE (39.3) suggests stretched valuation.
- Quarterly PAT decline (638 Cr → 548 Cr) raises earnings concerns.
- PEG ratio at 1.83 indicates growth is already priced in.
Company Negative News
- Decline in DII holdings (-1.17%) signals reduced domestic institutional confidence.
- Sequential PAT decline highlights short-term earnings pressure.
Company Positive News
- Increase in FII holdings (+1.35%) reflects strong foreign investor interest.
- Quarterly profit variation (+6.71%) supports earnings momentum on a YoY basis.
Industry
- Industry PE at 39.3 is lower than CUMMINSIND’s P/E, suggesting relative overvaluation.
- Capital goods sector benefits from infrastructure expansion and industrial demand growth.
Conclusion
✅ CUMMINSIND shows strong technical momentum supported by fundamentals. Entry near 5,050–5,100 ₹ with exits around 5,280–5,325 ₹ is favorable for swing trades. Long-term investors should be cautious of high valuations but can hold given strong ROE, ROCE, and debt-free profile.
This is the short-term technical trade view. If you’d like, I can also prepare a long-term investment outlook for CUMMINSIND, focusing on growth sustainability, dividend yield, and sector benchmarking.