Why is Cummins India Ltd. ?
1
Stock is technically in a Mildly Bearish range
- A key technical factor - Bollinger Band has been Bearish since 18 Mar 2025
2
With ROE of 28, it has a Very Expensive valuation with a 11 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.30%, its profits have risen by 31.2% ; the PEG ratio of the company is 1.2
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diesel Engines)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Cummins India for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cummins India
-5.02%
-0.14
37.30%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
13.54%
EBIT Growth (5y)
27.01%
EBIT to Interest (avg)
63.69
Debt to EBITDA (avg)
0.34
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.16
Tax Ratio
22.08%
Dividend Payout Ratio
61.22%
Pledged Shares
0
Institutional Holding
40.00%
ROCE (avg)
24.88%
ROE (avg)
19.82%
Valuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
35
Price to Book Value
11.01
EV to EBIT
38.64
EV to EBITDA
35.30
EV to Capital Employed
17.62
EV to Sales
7.22
PEG Ratio
1.22
Dividend Yield
1.37%
ROCE (Latest)
44.46%
ROE (Latest)
28.00%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
16What is working for the Company
ROCE(HY)
Highest at 36.22 %
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 1,636.11 cr
NET SALES(Q)
At Rs 3,096.15 cr has Grown at 27.9 %
PBDIT(Q)
Highest at Rs 597.57 cr.
PBT LESS OI(Q)
Highest at Rs 602.20 cr.
PAT(Q)
Highest at Rs 558.46 cr.
EPS(Q)
Highest at Rs 20.15
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
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Here's what is working for Cummins India
Net Sales - Quarterly
Highest at Rs 3,096.15 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 3,096.15 cr has Grown at 27.9 %
over average Net Sales of the previous four quarters of Rs 2,421.14 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 597.57 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 602.20 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 558.46 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 20.15
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 1,636.11 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Cummins India
Non Operating Income - Quarterly
Highest at Rs 111.39 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income