ScoreWhy is Cummins India Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.90%
- Healthy long term growth as Net Sales has grown by an annual rate of 22.67% and Operating profit at 46.84%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
With a growth in Net Sales of 9.06%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CF(Y) Highest at Rs 1,684.86 Cr
- ROCE(HY) Highest at 38.05%
- OPERATING PROFIT TO NET SALES(Q) Highest at 21.92%
3
High Institutional Holdings at 40.18%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
- It is ranked 6 across all Mid Cap and 9 across the entire market
5
Consistent Returns over the last 3 years
- Along with generating 29.12% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Cummins India should be less than 10%
- Overall Portfolio exposure to Compressors, Pumps & Diesel Engines should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Compressors, Pumps & Diesel Engines)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cummins India for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Cummins India
28.69%
1.01
28.80%
Sensex
4.55%
0.37
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.67%
EBIT Growth (5y)
46.84%
EBIT to Interest (avg)
84.84
Debt to EBITDA (avg)
0.15
Net Debt to Equity (avg)
-0.42
Sales to Capital Employed (avg)
1.25
Tax Ratio
23.18%
Dividend Payout Ratio
71.38%
Pledged Shares
0
Institutional Holding
40.18%
ROCE (avg)
32.18%
ROE (avg)
22.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
49
Price to Book Value
15.67
EV to EBIT
53.54
EV to EBITDA
49.31
EV to Capital Employed
26.43
EV to Sales
10.34
PEG Ratio
2.96
Dividend Yield
1.15%
ROCE (Latest)
49.36%
ROE (Latest)
29.19%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Bullish
Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CF(Y)
Highest at Rs 1,684.86 Cr
ROCE(HY)
Highest at 38.05%
OPERATING PROFIT TO NET SALES(Q)
Highest at 21.92%
DPR(Y)
Highest at 71.38%
NET SALES(Q)
Highest at Rs 3,170.27 cr
PBDIT(Q)
Highest at Rs 694.79 cr.
PBT LESS OI(Q)
Highest at Rs 701.26 cr.
PAT(Q)
Highest at Rs 622.33 cr.
EPS(Q)
Highest at Rs 22.45
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Cummins India
Operating Cash Flow - Annually
Highest at Rs 1,684.86 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 21.92% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Net Sales - Quarterly
Highest at Rs 3,170.27 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 694.79 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 701.26 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 701.26 cr has Grown at 22.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 573.19 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 622.33 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 22.45
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Highest at 71.38%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
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