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Cummins India Limited
(CUMMINSIND)
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Rating:66Neutral
Price Target:
₹4,812.00
▼(-14.10% Downside)
Action:Downgraded
Date:08/29/26
Score is supported primarily by strong financial performance (growth, profitability, very low leverage, and strong free cash flow). It is materially offset by weak near-term technical momentum (below key moving averages with negative MACD and low RSI) and an expensive valuation (high P/E with modest yield).
Positive Factors
Revenue Growth
The substantial multi-year revenue increase indicates expanding demand for Cummins India’s engines and power solutions across its served markets. Continued scale supports operating leverage, strengthens customer reach, and provides a durable base for aftermarket and service revenue growth.
Negative Factors
Gross Margin Pressure
The decline in gross profit despite continued revenue and net income growth signals pressure on product economics, costs, or sales mix. If this persists, it could limit operating leverage, moderate return expansion, and reduce the earnings benefit from future top-line growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The substantial multi-year revenue increase indicates expanding demand for Cummins India’s engines and power solutions across its served markets. Continued scale supports operating leverage, strengthens customer reach, and provides a durable base for aftermarket and service revenue growth.
Read all positive factors
Cummins India Limited (CUMMINSIND) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.25T
Dividend Yield1.46%
Average Volume (3M)35.87K
Price to Earnings (P/E)52.9
Beta (1Y)1.04
Revenue Growth15.30%
EPS Growth10.55%
CountryIN
Employees5,229
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)85.20
Shares Outstanding277,200,000
10 Day Avg. Volume28,505
30 Day Avg. Volume35,868
Financial Highlights & Ratios
PEG Ratio2.92
Price to Book (P/B)14.72
Price to Sales (P/S)10.27
P/FCF Ratio66.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)93.66
Revenue Forecast (FY)₹142.01B
Cummins India Limited Business Overview & Revenue Model
Company Description
Cummins India Ltd. engages in the manufacture, design, and distribution of diesel and alternative fuel engines. The firm also offers electronics, emission solutions, filtration, fuel systems, and turbo technologies. It operates through Engines and...
How the Company Makes Money
Cummins India makes money primarily by selling diesel and gas engines and engine-based power solutions, and by providing parts and services over the life of the installed equipment base. Key revenue streams typically include: (1) Equipment/product...
Cummins India Limited Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 121.43B | 103.91B | 90.00B | 77.72B | 61.71B |
| Gross Profit | 34.81B | 37.45B | 31.79B | 25.05B | 20.26B |
| EBITDA | 32.97B | 23.03B | 19.72B | 14.28B | 10.42B |
| Net Income | 23.62B | 20.00B | 17.21B | 12.28B | 9.34B |
Balance Sheet | |||||
| Total Assets | 113.04B | 101.68B | 89.71B | 79.19B | 71.12B |
| Cash, Cash Equivalents and Short-Term Investments | 39.23B | 34.42B | 26.91B | 24.40B | 22.06B |
| Total Debt | 365.10M | 296.60M | 1.27B | 3.76B | 4.18B |
| Total Liabilities | 28.29B | 26.07B | 23.58B | 21.60B | 19.67B |
| Stockholders Equity | 84.75B | 75.61B | 66.12B | 57.58B | 51.45B |
Cash Flow | |||||
| Free Cash Flow | 18.85B | 17.90B | 9.97B | 6.58B | 5.60B |
| Operating Cash Flow | 21.37B | 20.28B | 12.85B | 8.20B | 7.12B |
| Investing Cash Flow | -3.90B | -9.31B | -2.68B | 691.50M | -5.86B |
| Financing Cash Flow | -14.92B | -11.62B | -11.34B | -6.87B | -822.50M |
Cummins India Limited Technical Analysis
Negative
5601.85
Price Trends
4915.54
Negative
5223.30
Negative
4989.28
Negative
Market Momentum
-133.78
Negative
40.23
Neutral
63.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CUMMINSIND, the sentiment is Negative. The current price of 5601.85 is above the 20-day moving average (MA) of 4671.18, above the 50-day MA of 4915.54, and above the 200-day MA of 4989.28, indicating a bearish trend. The MACD of -133.78 indicates Negative momentum. The RSI at 40.23 is Neutral, neither overbought nor oversold. The STOCH value of 63.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CUMMINSIND.
Cummins India Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹545.52B | 72.80 | ― | 0.39% | 42.13% | 21.66% | |
69 Neutral | ₹1.40T | 59.36 | ― | 0.57% | 13.63% | -11.32% | |
68 Neutral | ₹550.74B | 42.13 | ― | 0.99% | 22.67% | 23.28% | |
66 Neutral | ₹1.25T | 52.88 | ― | 1.46% | 15.30% | 10.55% | |
64 Neutral | ₹239.53B | 47.95 | ― | 0.19% | 9.03% | 3.22% | |
63 Neutral | ₹861.31B | 119.59 | ― | 0.48% | 17.54% | -31.63% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:CUMMINSIND
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Cummins India Limited Corporate Events
Cummins India to Withhold FY26 Dividend on Non-Compliant KYC Folios
Sep 17, 2026
Cummins India Limited has notified shareholders that final dividend for FY 2025-26 will be withheld for folios deemed KYC non-compliant under updated SEBI regulations. The move follows SEBI’s master circular and recent amendments mandating u...
Cummins India Expands High‑Horsepower and Smart Power Solutions at bauma CONEXPO 2026
Sep 15, 2026
Cummins India Limited, a prominent power solutions technology provider, serves sectors such as genset, construction, mining and mission‑critical infrastructure across India. Its portfolio spans high‑horsepower generator sets, cleaner e...
Cummins India’s Distribution Head Resigns; Search for Successor Underway
Aug 20, 2026
Cummins India Limited has announced that Mr. Pankaj Kapoor, Vice President – Distribution Business and designated Senior Management Personnel, has resigned to pursue external opportunities, with his cessation effective September 21, 2026. Hi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.