Cummins
Cummins
Industrial Products F&OKey Fundamentals
LargecapCompressors Pumps & Diesel EnginesIndustrial ProductsTapetide Score
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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
1- Stock is trading at 15.9 times its book value
Growth Rate
AI Analysis — Bull vs Bear
Cummins India has a market capitalisation of about ₹1,37,879 crore. It is almost debt free and pays a 70% dividend payout, which gives a dividend yield of 1.33%. Over 5 years, sales compounded at 23% and profit at 31%, with a 3-year average ROE of about 29%. The stock trades at 58.1x earnings and 16.2x book value. TTM sales growth of 15% and profit growth of 14% are slower than the company's 3- and 5-year rates.
- Profit has compounded at about 31% CAGR over 5 years and 26% over 3 years, well ahead of the 10-year profit CAGR of 13%.
- Return on equity has been high and rising: 30% last year, 29% on a 3-year average, 26% on a 5-year average and 22% on a 10-year average.
- The company is almost debt free, so a ₹1,37,879 crore business faces little balance-sheet risk from interest costs or leverage.
- A dividend payout of about 70% gives a 1.33% yield. That is a sizeable cash return for a company still growing sales at 15-16% a year.
- Sales compounded at 23% over 5 years and 16% over 3 years, compared with 10% over 10 years, which suggests demand has moved to a higher growth phase.
- Over 3 and 5 years, profit growth (26% and 31%) outpaced sales growth (16% and 23%), which points to operating leverage and better margins.
- The stock has compounded at 42% over 3 years and 38% over 5 years, and TTM sales are still growing at 15% after a long run of strong growth.
- At 58.1x earnings, the valuation is more than 4x the TTM profit growth of 14%. That leaves little room for any slowdown or earnings disappointment.
- A price-to-book ratio of 16.2x is steep for an industrial manufacturer, even allowing for ROE near 30%.
- Growth is slowing. TTM profit growth of 14% is about half the 3-year rate of 26% and well below the 5-year rate of 31%, and TTM sales growth of 15% trails the 5-year rate of 23%.
- TTM profit growth (14%) is now slightly below TTM sales growth (15%), which suggests the margin expansion seen in earlier years may be levelling off.
- Stock returns of 42% (3-year) and 38% (5-year) CAGR ran well ahead of 26% and 31% profit CAGR, so part of the gain came from the valuation multiple rising rather than from earnings.
- The 10-year sales CAGR of 10% and profit CAGR of 13% suggest the business has historically been cyclical. That makes the recent 5-year growth rates of 23-31% an uncertain guide to the future.
- A 70% payout ratio leaves only about 30% of profit for reinvestment, which may limit capacity growth or diversification unless payouts change.
- The 1.33% dividend yield is modest despite the high payout, because the 58.1x P/E compresses the yield. Income support for the valuation is limited.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- ₹95.26 lakh income tax penalty Sep 29
The Income Tax Department issued a ₹95.26 lakh penalty order under Section 270A for AY 2018-19. Cummins India says it has no material impact on operations, so the risk is small and mainly about governance and compliance.
- Portfolio showcase at bauma CONEXPO 2026 Sep 9
Cummins India showed its power generation, power distribution, energy storage and aftermarket portfolio at bauma CONEXPO India 2026 (Sep 15-18, Greater Noida, Hall 14, Booth B-41). The focus was on localised, emission-ready solutions for construction, infrastructure and mining demand.
- FY26 dividend withheld for KYC gaps Sep 17
The company withheld the ₹46 per share FY26 final dividend only for folios that don't meet KYC rules, in line with SEBI rules. Shareholders need to update their bank and KYC details through the RTA or their DPs to receive it electronically.
TL;DR: News flow for Cummins India was light and mostly routine. There were no new developments on earnings, orders or margins. The ₹95.26 lakh tax penalty is too small to matter for a company this size, and the ₹46 per share final dividend shows it is still returning cash to shareholders. The bauma CONEXPO showcase points to its push into infrastructure, mining and emission-ready power solutions. The overall trend looks stable, and the next real signal will come from quarterly results and demand from data centres and infrastructure.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,218 | 1,922 | 2,541 | 2,319 | 2,316 | 2,509 | 3,096 | 2,470 | 2,907 | 3,170 | 3,055 | 3,011 | 3,426 |
| Expenses | 1,876 | 1,575 | 1,999 | 1,781 | 1,842 | 2,025 | 2,499 | 1,945 | 2,283 | 2,475 | 2,420 | 2,369 | 2,810 |
| Operating Profit | 342 | 346 | 543 | 539 | 473 | 484 | 598 | 525 | 624 | 695 | 634 | 642 | 616 |
| OPM % | 15% | 18% | 21% | 23% | 20% | 19% | 19% | 21% | 21% | 22% | 21% | 21% | 18% |
| Other Income | 155 | 128 | 153 | 186 | 171 | 157 | 168 | 217 | 212 | 181 | 46 | 263 | 227 |
| Interest | 8 | 7 | 6 | 6 | 5 | 3 | 3 | 5 | 3 | 3 | 5 | 2 | 4 |
| Depreciation | 36 | 38 | 42 | 42 | 44 | 45 | 49 | 46 | 48 | 49 | 50 | 51 | 53 |
| PBT | 453 | 429 | 647 | 676 | 595 | 594 | 714 | 690 | 785 | 824 | 626 | 852 | 787 |
| Tax % | 22% | 23% | 23% | 20% | 22% | 24% | 22% | 23% | 23% | 24% | 22% | 24% | 23% |
| Net Profit | 354 | 329 | 499 | 539 | 463 | 449 | 558 | 530 | 604 | 622 | 486 | 649 | 609 |
| EPS in Rs | 12.76 | 11.87 | 18 | 19.44 | 16.69 | 16.21 | 20.15 | 19.1 | 21.79 | 22.45 | 17.53 | 23.43 | 21.98 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 12,662 |
| 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 | 10,075 |
| Operating Profit | 815 | 775 | 805 | 738 | 869 | 593 | 603 | 883 | 1,248 | 1,770 | 2,080 | 2,595 | 2,588 |
| OPM % | 17% | 16% | 16% | 14% | 15% | 11% | 14% | 14% | 16% | 20% | 20% | 21% | 20% |
| Other Income | 208 | 116 | 141 | 298 | 328 | 356 | 366 | 472 | 502 | 622 | 714 | 702 | 717 |
| Interest | 2 | 10 | 17 | 15 | 17 | 21 | 17 | 12 | 16 | 27 | 16 | 12 | 14 |
| Depreciation | 86 | 81 | 85 | 94 | 111 | 121 | 127 | 136 | 142 | 159 | 185 | 199 | 203 |
| PBT | 935 | 799 | 843 | 927 | 1,069 | 807 | 825 | 1,207 | 1,591 | 2,205 | 2,593 | 3,086 | 3,088 |
| 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 | 2,367 |
| 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 | 85.39 |
| Div. Payout % | 50% | 54% | 53% | 58% | 63% | 55% | 65% | 55% | 56% | 61% | 71% | 77% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 | 2,383 |
| CWIP | 171 | 519 | 463 | 39 | 159 | 80 | 128 | 61 | 41 | 97 | 85 | 98 |
| 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 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 589 | 696 | 748 | 632 | 553 | 601 | 789 | 712 | 820 | 1,285 | 1,683 | 1,734 |
| Investing | -146 | -215 | -483 | -134 | 15 | -202 | 25 | -574 | 87 | -248 | -578 | 26 |
| 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 | 265 |
| Free Cash Flow | 251 | 205 | 516 | 540 | 279 | 364 | 675 | 782 | 665 | 1,003 | 1,465 | 1,487 |
| CFO/OP | 98 | 112 | 116 | 110 | 91 | 129 | 145 | 109 | 94 | 101 | 109 | 91 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 | 53 |
| ROCE % | — | 24% | 22% | 21% | 24% | 18% | 17% | 21% | 27% | 35% | 36% | 40% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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Documents
Frequently Asked Questions about Cummins
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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]
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