Cummins India Ltd
Ticker: CUMMINSIND
Decent
72/100
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Investing Reference
Price
4344.10
Market Cap
120418.45
Debt/Equity
0.0039
ROE %
28.220
PB
15.9254
Promoter %
51.000
Pledge %
0.000
1Y Rev Growth %
15.389
5Y Rev Growth %
14.791
NP Margin %
18.010
NP Margin 5Y Avg %
15.630
Trading Reference
1M Return %
12.071
6M Return %
50.383
1Y Return %
24.096
% Away 52W High
1.280
% Away 52W Low
68.376
Daily Volume
677463
Investment Verdict
Hold
Score 65/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Momentum
Score 90/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Cummins India Ltd shows strong fundamentals with robust growth potential in the power generation and industrial sectors.
✅ Positives
- Strong market position in diesel engines
- Diverse product portfolio and customer base
- Focus on sustainable energy solutions
⚠️ Negatives
- Exposure to cyclical industrial demand
- Rising raw material costs impacting margins
- Competition from alternative energy sources
Verdict
Overall, a solid investment with cautious outlook.
Recommendation: Consider buying on dips for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 30/10/2025
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Business Overview
Cummins India Ltd is a leading manufacturer of engines and power generation equipment, catering to diverse sectors such as automotive, industrial, and marine. With a strong commitment to innovation and sustainability, Cummins delivers reliable solutions that enhance productivity and efficiency. This company is essential for businesses seeking robust power solutions in a rapidly evolving market, ensuring operational excellence and environmental responsibility.
- Established leader in engine manufacturing
- Diverse applications across multiple sectors
- Focus on innovation and sustainability
- Strong commitment to customer satisfaction
- Robust support and service network in India
Investment Thesis
Cummins India Ltd stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This combination positions the company for sustained growth and makes it a compelling investment opportunity for retail investors.
- Strong backing from the Cummins Group ensures stability and strategic direction.
- Significant growth potential in digital services, enhancing revenue streams.
- Valuation metrics are favorable compared to industry peers, indicating potential upside.
- Established market presence and brand reputation bolster investor confidence.
- Commitment to sustainability and innovation aligns with future market trends.
Opportunity vs Risk
Opportunities
- Strong demand for clean energy solutions
- Expanding electric vehicle market
- Growing infrastructure projects in India
- Rising global industrial output
Risks ⚠️
- Volatility in raw material prices
- Regulatory changes impacting operations
- Currency fluctuations affecting profitability
- Intense competition in the sector
Peer Perspective
Cummins India Ltd trades at a premium to peers like Greaves Cotton and Kirloskar Oil Engines, reflecting strong margins. A sustained focus on innovation and growth acceleration could further enhance its valuation.
Future Outlook
Cummins India Ltd is well-positioned for growth in the evolving energy landscape, provided it maintains strong execution and cost control. Continued innovation and market expansion could enhance its competitive edge and profitability.
AI FAQs for Retail Users
- Q: What does Cummins India Ltd do?A: Cummins India Ltd manufactures engines and power generation equipment, focusing on sustainable solutions.
- Q: Is Cummins India Ltd a good investment?A: Investment decisions should consider personal financial goals and market conditions. Research is essential.
- Q: What are the risks of investing in Cummins India Ltd?A: Risks include market volatility, competition, and changes in regulations affecting the industry.
- Q: How can I buy shares of Cummins India Ltd?A: Shares can be purchased through a stockbroker or online trading platform.
- Q: What is the dividend policy of Cummins India Ltd?A: Cummins India typically pays dividends, but the amount can vary based on company performance.
📊 Stock Investment Checklist (100 Points)
Cummins India Ltd • Updated: 2025-09-17 15:37:45
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10BusinessHighThe sector is future-ready with a strong focus on sustainability and innovation.
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10GrowthHighConsistent revenue and profit growth over the last few years.
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10ProfitabilityHighStrong ROE and ROCE, with healthy operating cash flow.
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8ValuationHighValuation metrics are slightly above industry averages.
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9BalanceHighStrong balance sheet with low debt levels.
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7GovernanceHighGood promoter holding with minimal pledging.
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6DriversGoodStrong growth drivers but some execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 72 / 100
• Decent
Cummins India Ltd shows a decent investment profile with solid growth and profitability metrics, though valuation is slightly stretched.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 85/100
- Market Confidence: 78/100