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 22.73% and Operating profit at 45.30%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
High Institutional Holdings at 40.14%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
3
Market Beating performance in long term as well as near term
- Along with generating 53.24% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
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
53.24%
1.95
27.25%
Sensex
-5.47%
-0.43
12.65%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.73%
EBIT Growth (5y)
45.30%
EBIT to Interest (avg)
89.77
Debt to EBITDA (avg)
0.15
Net Debt to Equity (avg)
-0.42
Sales to Capital Employed (avg)
1.25
Tax Ratio
23.35%
Dividend Payout Ratio
71.38%
Pledged Shares
0
Institutional Holding
40.14%
ROCE (avg)
32.18%
ROE (avg)
22.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
55
Industry P/E
49
Price to Book Value
16.19
EV to EBIT
54.51
EV to EBITDA
50.24
EV to Capital Employed
27.34
EV to Sales
10.73
PEG Ratio
3.43
Dividend Yield
1.16%
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
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
PAT(9M)
At Rs 1,800.93 cr has Grown at 22.48%
ROCE(HY)
Highest at 38.05%
-2What is not working for the Company
EPS(Q)
Lowest at Rs 17.53
Loading Valuation Snapshot...
Here's what is working for Cummins India
Profit After Tax (PAT) - Nine Monthly
At Rs 1,800.93 cr has Grown at 22.48%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Cummins India
Earnings per Share (EPS) - Quarterly
Lowest at Rs 17.53
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
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