Cummins India Limited (CUMMINSIND) AI Stock Analysis

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Cummins India Limited

(NSE:CUMMINSIND)

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Rating:66.25Neutral

Price Target:INR 4,812.00▲(8.13% Upside)

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

Strong revenue growthThe large increase in revenue over five years indicates substantial business expansion across Cummins India’s engine, power-solution, and support activities. Continued scale can strengthen customer reach, improve operating leverage, and provide a durable base for future investment and cash generation.

Negative Factors

FY2026 gross margin pressureLower gross profit while revenue increased points to pressure on product economics, costs, or mix. If this pattern persists, it could reduce operating leverage and limit the extent to which future sales growth translates into earnings, cash generation, and returns.

Cummins India Limited (CUMMINSIND) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.23T
Dividend Yield: 1.48%
Average Volume (3M): 36.09K
Price to Earnings (P/E): 52.1
Beta (1Y): 1.04
Revenue Growth: 15.30%
EPS Growth: 10.55%
Country: India
Employees: 5,229
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

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 Lu...

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 sa...

Cummins India Limited Financial Statement Overview

Summary

Strong multi-year revenue and earnings growth with healthy profitability, an exceptionally conservative balance sheet with minimal debt, and robust free cash flow generation. Key risks are FY2026 gross margin pressure and a recurring pattern of operating cash flow running below net income in several years (working-capital/timing volatility).

Income Statement

86Very Positive

Balance Sheet

94Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	121.43B	121.43B	103.91B	90.00B	77.72B	61.71B
Gross Profit	37.29B	34.81B	37.45B	31.79B	25.05B	20.26B
EBITDA	31.04B	32.97B	23.03B	19.72B	14.28B	10.42B
Net Income	23.62B	23.62B	20.00B	17.21B	12.28B	9.34B
Balance Sheet
Total Assets	113.04B	113.04B	101.68B	89.71B	79.19B	71.12B
Cash, Cash Equivalents and Short-Term Investments	39.23B	39.23B	34.42B	26.91B	24.40B	22.06B
Total Debt	365.10M	365.10M	296.60M	1.27B	3.76B	4.18B
Total Liabilities	28.29B	28.29B	26.07B	23.58B	21.60B	19.67B
Stockholders Equity	84.75B	84.75B	75.61B	66.12B	57.58B	51.45B
Cash Flow
Free Cash Flow	6.31B	18.85B	17.90B	9.97B	6.58B	5.60B
Operating Cash Flow	7.42B	21.37B	20.28B	12.85B	8.20B	7.12B
Investing Cash Flow	1.66B	-3.90B	-9.31B	-2.68B	691.50M	-5.86B
Financing Cash Flow	-9.35B	-14.92B	-11.62B	-11.34B	-6.87B	-822.50M

Cummins India Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price4450.00

Price Trends

50DMA4897.46Negative

100DMA5212.18Negative

200DMA4991.15Negative

Market Momentum

MACD-133.62Negative

RSI37.58Neutral

STOCH63.21Neutral

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 4450.00 is below the 20-day moving average (MA) of 4655.88, below the 50-day MA of 4897.46, and below the 200-day MA of 4991.15, indicating a bearish trend. The MACD of -133.62 indicates Negative momentum. The RSI at 37.58 is Neutral, neither overbought nor oversold. The STOCH value of 63.21 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:CUMMINSIND against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BOSCHLTD	69Neutral	INR 1.39T	58.91	―	0.57%	13.63%	-11.32%
IN:SONACOMS	68Neutral	INR 555.70B	74.21	―	0.38%	42.13%	21.66%
IN:CUMMINSIND	66Neutral	INR 1.23T	52.14	―	1.48%	15.30%	10.55%
IN:ZFCVINDIA	63Neutral	INR 239.24B	47.90	―	0.19%	9.03%	3.22%
IN:SCHAEFFLER	56Neutral	INR 559.98B	42.55	―	0.98%	22.67%	23.28%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BHARATFORG	50Neutral	INR 843.45B	116.45	―	0.49%	17.54%	-31.63%

* General Sector Average

Performance Comparison

IN:CUMMINSIND and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:CUMMINSIND	Cummins India Limited	4450.00	131.21	3.04%
IN:BHARATFORG	Bharat Forge Ltd	1726.00	390.73	29.26%
IN:BOSCHLTD	Bosch Limited	47032.80	10258.62	27.90%
IN:SCHAEFFLER	Schaeffler India Ltd	3582.65	-660.20	-15.56%
IN:SONACOMS	Sona BLW Precision Forgings Ltd.	890.30	412.05	86.16%
IN:ZFCVINDIA	ZF Commercial Vehicle Control Systems India Limited	2102.15	-2.34	-0.11%

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 up-t...

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 emis...

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. His d...

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.

Date of analysis: Aug 28, 2026

Cummins India Limited AI Stock Analysis

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