Cummins India Ltd logo

Cummins India Ltd

CUMMINSIND NSE

Cummins India Ltd is a part of the Cummins Inc. Group USA. It designs, manufactures, distributes and services diesel and alternative fuel engines from 2.8 to 100 liters, diesel and alternative-fueled power generator sets of up to 3000 kW (3750 kVA), as well as related components and technology.[1]

AI Verdict: HOLD Confidence: 5%

Cummins India is a high-quality, debt-free compounder with 30% ROE and 31% profit CAGR over 5 years, but the stock trades at 68.8x PE and 19.2x book value after a 79% rally in the last year. Analyst opinion is deeply split with 41% buy and 41% sell ratings, suggesting the valuation already prices in strong execution.

Key Fundamentals

LargecapCompressors Pumps & Diesel EnginesIndustrial Products
Market Cap
1.6L Cr
Volatility
Moderate
P/E Ratio
66.22
EBITDA
₹2,307 Cr
Return on Equity
26.02%
Debt to Equity
0.01
Book Value
₹305.74
EPS
₹66.04
52W High
₹6,100
52W Low
₹3,278.5

Technical Indicators

Key Insights

Strengths

4
  • Company is almost debt free.
  • Company has delivered good profit growth of 30.8% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 28.8%
  • Company has been maintaining a healthy dividend payout of 70.0%

Weaknesses

2
  • Stock is trading at 18.2 times its book value
  • Working capital days have increased from 64.5 days to 99.1 days

Growth Rate

Revenue Growth
10.26% ↗
Net Income Growth
18.36% ↘
Cash Flow Change
31.08% ↗
ROE
1.65% ↘
ROCE
2.17% ↘
EBITDA Margin (Avg.)
-22.38% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

Cummins India is a high-quality, debt-free compounder with 30% ROE and 31% profit CAGR over 5 years, but the stock trades at 68.8x PE and 19.2x book value after a 79% rally in the last year. Analyst opinion is deeply split with 41% buy and 41% sell ratings, suggesting the valuation already prices in strong execution.

Bull Case 8
  • Debt-free balance sheet provides financial resilience and flexibility for capital allocation in cyclical downturns
  • Exceptional ROE consistency — 30% last year, 29% 3-year average, 26% 5-year average — indicates durable competitive advantages and pricing power
  • Compounded profit growth of 31% CAGR over 5 years significantly outpaces sales growth of 23%, reflecting operating leverage and margin expansion
  • Healthy dividend payout ratio of 70% with 1.13% yield signals shareholder-friendly management and strong cash generation
  • TTM sales growth of 17% shows continued momentum in the current fiscal year with no signs of demand slowdown
  • 10-year stock CAGR of 22% demonstrates long-term wealth compounding ability through multiple economic cycles
  • Market cap of Rs 1,62,869 crore provides institutional liquidity and index inclusion benefits for sustained fund flows
  • 3-year profit CAGR of 26% during a period that included post-COVID supply chain disruptions shows operational resilience
Bear Case 8
  • PE ratio of 68.8x is extremely elevated for an industrial company, leaving minimal margin of safety if growth disappoints
  • Price-to-book of 19.2x implies the market is pricing in decades of supernormal returns, creating significant downside risk on any earnings miss
  • Analyst consensus is deeply divided — 41% sell ratings (9 out of 22 analysts) suggest institutional skepticism at current levels
  • Working capital days have deteriorated from 64.5 to 99.1 days, a 54% increase indicating potential cash conversion cycle stress
  • Stock has rallied 79% in the last 1 year, making mean reversion a material risk with limited upside from current valuations
  • TTM sales growth of 17% does not justify a 68.8x PE multiple — implied PEG ratio exceeds 3x even on profit growth
  • 10-year sales CAGR of only 10% suggests the recent 16-17% growth phase may not be structurally sustainable over a full cycle
  • Only 18% of analysts rate the stock a Hold, indicating polarized views and potential for sharp price swings on any negative catalyst

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 5
  • Exports fall 6% YoY Jun 01

    Export revenue declined 6% YoY to ₹450 crore in Q4FY26, with Middle East subdued and Europe/Asia-Pacific showing only moderate demand. Management's FY27 export outlook remains cautious due to geopolitical uncertainty.

  • Stretched valuation at 57x FY27E Jun 01

    Stock trades at 57x FY27 earnings per Bloomberg consensus after gaining 70%+ over the past year. Goldman Sachs maintains 'Sell' at ₹3,980 target; Prabhudas Lilladher downgraded to 'Reduce' at ₹5,133.

  • Compressor segment cyclical downturn Jun 01

    Management indicated the compressor segment business is expected to enter a cyclical downtrend, while industrial revenue guidance for FY27 is flat YoY.

  • Supply chain and cost pressures Jun 01

    Labour shortages at supplier facilities, rising fuel costs and commodity inflation are emerging headwinds. Previously booked orders face margin pressure with lead times stretching to 3-6 months.

  • Stock fell 3.5% post results Jun 01

    Despite strong Q4 beat, shares dropped 3.5% on Jun 1 from ₹5,979.50 open to ₹5,689 low, reflecting mixed analyst sentiment and profit-booking after the 12% surge on May 27.

Positives 7
  • Data centres drive 48% powergen growth Jun 01

    Power generation revenue surged 48% YoY in Q4FY26 with data centres contributing 30-35% of domestic powergen revenue in FY26 and 35% in Q4. India's committed data centre investments since 2019 have crossed $95 billion.

  • Q4 EBITDA beats estimates by 18% May 27

    Q4FY26 EBITDA of ₹642 crore beat Bloomberg consensus of ₹544 crore by ~₹100 crore. Revenue rose 23% YoY to ₹2,963 crore, beating estimates by 4.6%.

  • FY26 profit up 22% to ₹2,330 Cr Jun 03

    FY26 standalone net profit rose 22% to ₹2,330 crore on revenue of ₹11,950 crore (up 18% YoY). Gross margins expanded 60 bps YoY to 36.8%.

  • Citi raises target to ₹6,700 Jun 01

    Citi raised target from ₹5,200 to ₹6,700 (Buy); Jefferies set ₹7,100 target (20.7% upside); HSBC raised to ₹6,500. Citi hiked FY27/FY28 PAT estimates by 8%/14%.

  • Distribution business up 21-22% YoY Jun 01

    Distribution segment grew 22% YoY in FY26 driven by volume expansion. Structural tailwind emerging from June 2026 as CPCB IV+ engines move beyond standard warranty, creating aftermarket revenue.

  • ₹46/share final dividend declared Jun 03

    Board recommended final dividend of ₹46 per share (2,300% dividend) with record date July 17, 2026, payable by September 4, 2026.

  • 70% utilisation, room to grow Jun 01

    Capacity utilisation at 70% provides headroom to grow without significant capex. No major greenfield expansion plans, supporting capital efficiency and return ratios.

Neutral 5
  • No encumbrance on promoter shares Jun 12

    Cummins Inc. declared no encumbrance on shares of Cummins India for FY ended March 2026 under SEBI regulations.

  • Bombay HC stays retirement order Jun 12

    Bombay HC granted interim stay on orders modifying workmen retirement age to 60 years. Company had challenged the modification.

  • ₹25 Cr block trade at ₹5,635 Jun 09

    Block trade of ~44,336 shares at ₹5,635/share on NSE totalling ₹24.98 crore, indicating institutional investor activity.

  • Investor meetings scheduled Jun 04

    Cummins India held investor meetings on June 9-10, 2026 with Motilal Oswal Financial Services and First Sentier Investors (Hong Kong).

  • Q4FY26 concall audio uploaded May 30

    Audio recording of Q4 and FY26 results conference call held May 29, 2026 uploaded to investor website per SEBI compliance.

TL;DR: Cummins India delivered a standout FY26 with 22% profit growth and a massive Q4 earnings beat driven by data centre demand powering 48% growth in power generation. The structural story around Indian data centre buildouts ($95B committed since 2019) and distribution aftermarket tailwinds is compelling. Key risks are rich valuations at 57x forward earnings, muted exports, and an expected compressor segment downturn. The domestic growth trend is strong and improving, but the stock price already reflects much of the optimism, making further upside dependent on sustained execution.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,934
2,218
1,922
2,541
2,319
2,316
2,509
3,096
2,470
2,907
3,170
3,055
3,011
Expenses
1,604
1,876
1,575
1,999
1,781
1,842
2,025
2,499
1,945
2,283
2,475
2,420
2,369
Operating Profit
330
342
346
543
539
473
484
598
525
624
695
634
642
OPM %
17%
15%
18%
21%
23%
20%
19%
19%
21%
21%
22%
21%
21%
Other Income
159
155
128
153
186
171
157
168
217
212
181
46
263
Interest
7
8
7
6
6
5
3
3
5
3
3
5
2
Depreciation
38
36
38
42
42
44
45
49
46
48
49
50
51
PBT
444
453
429
647
676
595
594
714
690
785
824
626
852
Tax %
21%
22%
23%
23%
20%
22%
24%
22%
23%
23%
24%
22%
24%
Net Profit
349
354
329
499
539
463
449
558
530
604
622
486
649
EPS in Rs
12.59
12.76
11.87
18
19.44
16.69
16.21
20.15
19.1
21.79
22.45
17.53
23.43
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
4,916
4,720
5,106
5,112
5,697
5,191
4,360
6,171
7,772
9,000
10,391
12,143
Expenses
4,101
3,945
4,302
4,374
4,828
4,598
3,757
5,288
6,524
7,231
8,311
9,548
Operating Profit
815
775
805
738
869
593
603
883
1,248
1,770
2,080
2,595
OPM %
17%
16%
16%
14%
15%
11%
14%
14%
16%
20%
20%
21%
Other Income
208
116
141
298
328
356
366
472
502
622
714
702
Interest
2
10
17
15
17
21
17
12
16
27
16
12
Depreciation
86
81
85
94
111
121
127
136
142
159
185
199
PBT
935
799
843
927
1,069
807
825
1,207
1,591
2,205
2,593
3,086
Tax %
19%
21%
22%
23%
31%
13%
23%
23%
23%
22%
23%
23%
Net Profit
772
721
736
712
743
706
635
934
1,228
1,721
2,000
2,362
EPS in Rs
27.85
26.02
26.56
25.68
26.79
25.45
22.91
33.68
44.31
62.07
72.15
85.2
Div. Payout %
50%
54%
53%
58%
63%
55%
65%
55%
56%
61%
71%
77%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
55
55
55
55
55
55
55
55
55
55
55
55
Reserves
3,033
3,553
3,816
4,063
4,228
4,347
4,596
5,090
5,703
6,557
7,506
8,420
Borrowings
3
3
252
257
313
512
40
418
376
127
30
37
Other Liabilities
1,508
1,051
1,091
1,339
1,465
1,282
1,265
1,549
1,784
2,231
2,577
2,793
Total Liabilities
4,599
4,662
5,214
5,715
6,060
6,196
5,956
7,112
7,919
8,971
10,168
11,304
Fixed Assets
1,307
1,291
1,502
2,021
2,015
2,270
2,189
2,209
2,226
2,302
2,364
2,404
CWIP
171
519
463
39
159
80
128
61
41
97
85
77
Investments
536
489
862
708
468
1,038
599
892
1,457
1,642
1,482
2,153
Other Assets
2,585
2,364
2,387
2,947
3,418
2,809
3,041
3,951
4,194
4,930
6,238
6,670
Total Assets
4,599
4,662
5,214
5,715
6,060
6,196
5,956
7,112
7,919
8,971
10,168
11,304
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
589
696
748
632
553
601
789
712
820
1,285
1,685
1,734
Investing
-146
-215
-483
-134
15
-202
25
-574
87
-248
-580
15
Financing
-444
-471
-226
-470
-525
-412
-873
-82
-687
-1,134
-1,168
-1,495
Net Cash Flow
-1
10
39
28
43
-14
-60
56
219
-97
-63
254
Free Cash Flow
251
205
516
540
279
364
675
782
665
1,003
1,455
1,487
CFO/OP
98
112
116
110
91
129
145
109
94
101
108
91
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
73
73
69
96
82
81
91
74
75
85
80
83
Inventory Days
89
75
63
61
64
62
75
66
63
60
56
56
Days Payable
79
69
68
85
83
75
97
89
81
89
87
79
Cash Conversion Cycle
83
79
65
71
63
68
69
51
58
56
49
60
Working Capital Days
54
78
49
57
59
40
72
39
36
48
46
99
ROCE %
—
24%
22%
21%
24%
18%
17%
21%
27%
35%
36%
40%

Shareholding Pattern

As of Mar 2026
Promoters 51.00%
FIIs 20.78%
DIIs 19.55%
Public 7.01%
Others 1.66%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
51.00%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
16.46%
16.51%
17.36%
17.95%
17.50%
18.10%
17.21%
17.50%
18.35%
19.43%
20.78%
DIIs
25.19%
24.19%
24.22%
23.57%
24.93%
24.79%
24.76%
25.20%
23.81%
23.97%
22.18%
23.56%
23.00%
22.39%
22.62%
21.91%
22.94%
22.64%
21.83%
20.70%
19.55%
Government
1.26%
0.22%
0.20%
0.20%
0.20%
0.20%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.21%
8.60%
8.27%
8.26%
8.42%
8.20%
8.54%
7.98%
7.59%
7.74%
7.58%
7.35%
7.10%
7.12%
7.19%
7.33%
7.29%
7.26%
7.14%
7.17%
7.01%
Others
14.33%
15.99%
16.30%
16.96%
15.45%
15.81%
15.70%
15.82%
17.60%
17.30%
2.78%
1.59%
1.53%
1.54%
1.69%
1.66%
1.55%
1.60%
1.68%
1.70%
1.66%
No. of Shareholders
0
84,196
92,954
90,794
1,00,739
1,11,184
1,09,067
1,19,027
1,22,448
1,19,883
1,28,971
1,17,905
1,20,043
1,50,097
1,64,943
1,77,228
1,62,496
1,59,665
1,60,027
1,66,210
1,61,993

Documents

Frequently Asked Questions about Cummins India Ltd

What does Cummins India Ltd do?
Cummins India Ltd is a part of the Cummins Inc. Group USA. It designs, manufactures, distributes and services diesel and alternative fuel engines from 2.8 to 100 liters, diesel and alternative-fueled power generator sets of up to 3000 kW (3750 kVA), as well as related components and technology.[1]
Where is Cummins India Ltd (CUMMINSIND) listed?
Cummins India Ltd is listed on the Indian stock exchanges. It is listed on NSE: CUMMINSIND and BSE: 500480. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Cummins India Ltd belong to?
Cummins India Ltd operates in the Industrials sector within the Industrial Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Cummins India Ltd?
Cummins India Ltd has a market capitalisation of approximately ₹156368.52 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Cummins India Ltd?
The Price-to-Earnings (PE) ratio of Cummins India Ltd is 66.22. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Cummins India Ltd?
Over the past 52 weeks, Cummins India Ltd has traded between a low of ₹3,278.5 and a high of ₹6,100. This range helps investors understand the stock's price volatility and recent trading levels.
Does Cummins India Ltd pay dividends?
Yes, Cummins India Ltd has a dividend yield of 1.19%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Cummins India Ltd?
Cummins India Ltd has a Return on Equity (ROE) of 26.02%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Cummins India Ltd on Tapetide?
On Tapetide, you can view Cummins India Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Cummins India Ltd is a part of the Cummins Inc. Group USA. It designs, manufactures, distributes and services diesel and alternative fuel engines from 2.8 to 100 liters, diesel and alternative-fueled power generator sets of up to 3000 kW (3750 kVA), as well as related components and technology.[1]

Website cumminsindia.com
CEO Ms. Shveta Arya
Employees 3,025
Listed 1994-11-03
Face Value ₹ 2
Issued Size 27,72,00,000

Explore More

More in Industrials → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List