ScoreWhy is Cummins India Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.75%
- Healthy long term growth as Net Sales has grown by an annual rate of 20.17% and Operating profit at 31.76%
- The company is Net-Debt Free
2
Flat results in Jun 26
- PBDIT(Q) Lowest at Rs 616.16 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at 17.98%
3
With ROE of 28.6, it has a Very Expensive valuation with a 17.6 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 47.29%, its profits have risen by 14.5% ; the PEG ratio of the company is 4.2
4
High Institutional Holdings at 40.35%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Market Beating Performance
- The stock has generated a return of 47.29% in the last 1 year, much higher than market (BSE500) returns of 4.11%
Real-Time Research ReportHow much should you hold?
- 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
47.29%
1.67
28.26%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.17%
EBIT Growth (5y)
31.76%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.14
Net Debt to Equity (avg)
-0.46
Sales to Capital Employed (avg)
1.30
Tax Ratio
23.35%
Dividend Payout Ratio
71.38%
Pledged Shares
0
Institutional Holding
40.35%
ROCE (avg)
36.07%
ROE (avg)
23.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
61
Industry P/E
56
Price to Book Value
17.58
EV to EBIT
60.87
EV to EBITDA
56.09
EV to Capital Employed
31.62
EV to Sales
11.46
PEG Ratio
4.21
Dividend Yield
1.23%
ROCE (Latest)
52.22%
ROE (Latest)
28.62%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
NET SALES(Q)
Highest at Rs 3,426.01 cr
-3What is not working for the Company
PBDIT(Q)
Lowest at Rs 616.16 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 17.98%
Loading Valuation Snapshot...
Here's what is working for Cummins India
Net Sales - Quarterly
Highest at Rs 3,426.01 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Cummins India
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 616.16 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 17.98%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
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