Cummins India Ltd
NSE:CUMMINSIND

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Cummins India Ltd Logo
Cummins India Ltd
NSE:CUMMINSIND
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Price: 3 319.4 INR 1.13% Market Closed
Market Cap: 920.1B INR
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Intrinsic Value

The intrinsic value of one CUMMINSIND stock under the Base Case scenario is 1 839.09 INR. Compared to the current market price of 3 319.4 INR, Cummins India Ltd is Overvalued by 45%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

CUMMINSIND Intrinsic Value
1 839.09 INR
Overvaluation 45%
Intrinsic Value
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Base Case
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Cummins India Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Cummins India Ltd. is a prominent player in the Indian engineering sector, primarily known for its expertise in designing, manufacturing, and distributing engines and related technologies. Established in 1962, the company has built a strong reputation for innovation and quality, driven by a deep commitment to sustainability and environmental stewardship. Its diverse product portfolio includes diesel and natural gas engines, power generation equipment, and a range of components that serve various industries, including automotive, construction, and power generation. As an affiliate of the global Cummins Inc., which has a well-established market presence in over 190 countries, Cummins India ben...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Cummins India Ltd

Current Assets 59.4B
Cash & Short-Term Investments 27.3B
Receivables 20.9B
Other Current Assets 11.3B
Non-Current Assets 30.3B
Long-Term Investments 14.5B
PP&E 12.9B
Intangibles 1.3B
Other Non-Current Assets 1.5B
Current Liabilities 20.6B
Accounts Payable 14.1B
Short-Term Debt 1B
Other Current Liabilities 5.5B
Non-Current Liabilities 3B
Long-Term Debt 198.5m
Other Non-Current Liabilities 2.8B
Efficiency

Earnings Waterfall
Cummins India Ltd

Revenue
91B INR
Cost of Revenue
-57.1B INR
Gross Profit
33.9B INR
Operating Expenses
-16.5B INR
Operating Income
17.3B INR
Other Expenses
962.3m INR
Net Income
18.3B INR

Free Cash Flow Analysis
Cummins India Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q2 FY 2024-25, Cummins India achieved a remarkable 31% increase in sales to INR 2,444 crores, driven by a 47% jump in domestic sales. Profit before tax rose by 39% year-over-year to INR 594 crores. The company expects double-digit revenue growth for the full fiscal year amid a stable economic outlook. Demand for power generation remains strong with noteworthy contributions from high horsepower generators. However, export sales faced challenges, with a 13% decline due to geopolitical factors. Cummins maintains a robust position to capitalize on growth opportunities, supported by solid infrastructure and talent.

What is Earnings Call?
Fundamental Scores

CUMMINSIND Profitability Score
Profitability Due Diligence

Cummins India Ltd's profitability score is 67/100. The higher the profitability score, the more profitable the company is.

Positive 3-Year Average ROE
Positive 3-Year Average ROIC
Positive Gross Profit
Exceptional 3-Years Revenue Growth
67/100
Profitability
Score

Cummins India Ltd's profitability score is 67/100. The higher the profitability score, the more profitable the company is.

CUMMINSIND Solvency Score
Solvency Due Diligence

Cummins India Ltd's solvency score is 96/100. The higher the solvency score, the more solvent the company is.

96/100
Solvency
Score

Cummins India Ltd's solvency score is 96/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CUMMINSIND Price Targets Summary
Cummins India Ltd

Wall Street analysts forecast CUMMINSIND stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CUMMINSIND is 3 603.32 INR with a low forecast of 2 272.5 INR and a high forecast of 4 890.9 INR.

Lowest
Price Target
2 272.5 INR
32% Downside
Average
Price Target
3 603.32 INR
9% Upside
Highest
Price Target
4 890.9 INR
47% Upside
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Dividends

Dividend Yield
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Average
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Shareholder Yield

Current shareholder yield for CUMMINSIND is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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Ownership

CUMMINSIND Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

Cummins India Ltd Logo
Cummins India Ltd

Country

India

Industry

Machinery

Market Cap

920.1B INR

Dividend Yield

1.14%

Description

Cummins India Ltd. engages in the manufacture, design, and distribution of diesel and alternative fuel engines. The company is headquartered in Pune, Maharashtra and currently employs 3,167 full-time employees. The firm operates through two segments: Engines and Lubes. The company comprises of three businesses, which include Engine Business, Power Systems Business and Distribution Business. Its Engine Business manufactures and markets diesel engines for off-highway applications. Its Power Systems Business provides power generation systems for prime, standby and distributes power generation requirements. Its Distribution Business provides products, services, and solutions for uptime of its equipment and engines. Its product category includes engines, generators and power systems and components. Its primary products are compression ignition, internal combustion engines, generator sets, and component or parts. The company serves various industries, such as agriculture, bus, commercial power, construction, marine, rail, oil and gas, trucking and mining.

Contact

MAHARASHTRA
Pune
Tower A & B, Survey No. 21, Balewadi
+912067067000
www.cumminsindia.com

IPO

1994-11-03

Employees

3 167

Officers

Chief Financial Officer
Mr. Ajay Shriram Patil
Company Secretary & Compliance Officer
Ms. Vinaya Abhijit Joshi
MD & Director
Ms. Shveta Arya
Chief Information Officer
Annapurna Vishwanathan
Chief Administrative Officer
Ashish Aggarwal
Vice President of Legal & Secretarial
Ms. Sanjit Batra
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Executive Director of Human Resource
Ms. Anupama Kaul
Chief of Staff, Strategy and Head of Corporate Responsibility
Mr. Amit S. Kumar
Head of Engineering of Cummins Group in India
Pradheepram Ottikkutti
Chief Supply Chain Officer
Shubhankar Chatterji
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What is the Intrinsic Value of one CUMMINSIND stock?

The intrinsic value of one CUMMINSIND stock under the Base Case scenario is 1 839.09 INR.

Is CUMMINSIND stock undervalued or overvalued?

Compared to the current market price of 3 319.4 INR, Cummins India Ltd is Overvalued by 45%.

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