Cummins India Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: June 13, 2025, 9:36 pm

Market Cap	91,755 Cr.
Current Price	3,310
High / Low	4,172/2,580
Stock P/E	48.2
Book Value	253
Dividend Yield	1.56 %
ROCE	37.7 %
ROE	28.9 %
Face Value	2.00
PEG Ratio	1.87

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Cummins India Ltd

Competitors of Cummins India Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
Swaraj Engines Ltd	4,870 Cr.	4,006	4,479/2,517	29.3	345	2.61 %	56.6 %	42.1 %	10.0
Kirloskar Oil Engines Ltd	13,015 Cr.	896	1,450/544	29.0	213	0.67 %	14.0 %	15.6 %	2.00
Greaves Cotton Ltd	4,819 Cr.	207	320/129		60.5	0.97 %	5.08 %	0.42 %	2.00
Cummins India Ltd	91,755 Cr.	3,310	4,172/2,580	48.2	253	1.56 %	37.7 %	28.9 %	2.00
Industry Average	28,614.75 Cr	2,104.75		35.50	217.88	1.45%	28.35%	21.76%	4.00

All Competitor Stocks of Cummins India Ltd

Quarterly Result

Metric	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025
Sales	1,494	1,687	1,951	2,181	1,926	2,209	1,900	2,534	2,316	2,304	2,492	3,086	2,457
Expenses	1,287	1,473	1,661	1,768	1,600	1,868	1,561	1,996	1,772	1,837	2,011	2,486	1,937
Operating Profit	207	214	291	412	326	341	339	538	544	467	481	600	520
OPM %	14%	13%	15%	19%	17%	15%	18%	21%	24%	20%	19%	19%	21%
Other Income	77	86	85	104	131	117	132	112	204	132	161	121	212
Interest	5	2	5	3	7	8	7	6	6	5	3	3	5
Depreciation	35	34	35	34	37	36	38	42	42	44	45	48	46
Profit before tax	244	264	336	479	413	415	426	602	701	551	594	670	681
Tax %	22%	25%	25%	25%	23%	24%	23%	24%	20%	24%	24%	23%	23%
Net Profit	189	199	252	360	318	316	329	455	562	420	451	514	521
EPS in Rs	6.82	7.17	9.10	12.99	11.49	11.39	11.85	16.41	20.26	15.14	16.26	18.54	18.81

Last Updated: May 31, 2025, 9:28 am

Below is a detailed analysis of the quarterly data for Cummins India Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Sales, as of Mar 2025, the value is 2,457.00 Cr.. The value appears to be declining and may need further review. It has decreased from 3,086.00 Cr. (Dec 2024) to 2,457.00 Cr., marking a decrease of 629.00 Cr..
For Expenses, as of Mar 2025, the value is 1,937.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 2,486.00 Cr. (Dec 2024) to 1,937.00 Cr., marking a decrease of 549.00 Cr..
For Operating Profit, as of Mar 2025, the value is 520.00 Cr.. The value appears to be declining and may need further review. It has decreased from 600.00 Cr. (Dec 2024) to 520.00 Cr., marking a decrease of 80.00 Cr..
For OPM %, as of Mar 2025, the value is 21.00%. The value appears strong and on an upward trend. It has increased from 19.00% (Dec 2024) to 21.00%, marking an increase of 2.00%.
For Other Income, as of Mar 2025, the value is 212.00 Cr.. The value appears strong and on an upward trend. It has increased from 121.00 Cr. (Dec 2024) to 212.00 Cr., marking an increase of 91.00 Cr..
For Interest, as of Mar 2025, the value is 5.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 3.00 Cr. (Dec 2024) to 5.00 Cr., marking an increase of 2.00 Cr..
For Depreciation, as of Mar 2025, the value is 46.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 48.00 Cr. (Dec 2024) to 46.00 Cr., marking a decrease of 2.00 Cr..
For Profit before tax, as of Mar 2025, the value is 681.00 Cr.. The value appears strong and on an upward trend. It has increased from 670.00 Cr. (Dec 2024) to 681.00 Cr., marking an increase of 11.00 Cr..
For Tax %, as of Mar 2025, the value is 23.00%. The value remains steady. There is no change compared to the previous period (Dec 2024) which recorded 23.00%.
For Net Profit, as of Mar 2025, the value is 521.00 Cr.. The value appears strong and on an upward trend. It has increased from 514.00 Cr. (Dec 2024) to 521.00 Cr., marking an increase of 7.00 Cr..
For EPS in Rs, as of Mar 2025, the value is 18.81. The value appears strong and on an upward trend. It has increased from 18.54 (Dec 2024) to 18.81, marking an increase of 0.27.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 6, 2025, 4:31 pm

Metric	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	4,589	3,977	4,406	4,709	5,077	5,082	5,659	5,158	4,329	6,140	7,744	8,959	10,199
Expenses	3,754	3,280	3,674	3,934	4,276	4,345	4,795	4,567	3,729	5,260	6,502	7,197	8,106
Operating Profit	835	697	732	775	802	738	864	590	600	880	1,243	1,761	2,093
OPM %	18%	18%	17%	16%	16%	15%	15%	11%	14%	14%	16%	20%	21%
Other Income	268	178	287	226	208	279	293	308	349	425	406	566	619
Interest	5	4	1	10	17	15	16	20	16	12	16	27	16
Depreciation	47	53	80	81	85	94	110	119	126	134	140	158	179
Profit before tax	1,051	818	937	910	908	908	1,030	759	808	1,159	1,492	2,143	2,516
Tax %	27%	27%	16%	17%	19%	22%	30%	17%	24%	24%	24%	23%
Net Profit	764	600	786	754	735	708	723	629	618	887	1,130	1,661	1,946
EPS in Rs	27.57	21.65	28.35	27.21	26.50	25.56	26.07	22.70	22.29	31.99	40.76	59.91	70.20
Dividend Payout %	47%	60%	49%	51%	53%	59%	65%	62%	67%	58%	61%	63%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	-21.47%	31.00%	-4.07%	-2.52%	-3.67%	2.12%	-13.00%	-1.75%	43.53%	27.40%	46.99%
Change in YoY Net Profit Growth (%)	0.00%	52.47%	-35.07%	1.55%	-1.15%	5.79%	-15.12%	11.25%	45.28%	-16.13%	19.60%

Cummins India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	9%
5 Years:	15%
3 Years:	19%
TTM:	15%

Compounded Profit Growth
10 Years:	11%
5 Years:	25%
3 Years:	35%
TTM:	18%

Stock Price CAGR
10 Years:	14%
5 Years:	53%
3 Years:	49%
1 Year:	-11%

Return on Equity
10 Years:	21%
5 Years:	23%
3 Years:	27%
Last Year:	29%

Last Updated: Unknown

Balance Sheet

Last Updated: June 12, 2025, 3:39 pm

Month	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Equity Capital	55	55	55	55	55	55	55	55	55	55	55	55
Reserves	2,510	2,831	3,426	3,687	3,931	4,075	4,120	4,351	4,797	5,313	6,108	6,963
Borrowings	0	0	0	251	252	309	504	33	412	373	120	30
Other Liabilities	1,208	1,435	1,009	1,048	1,294	1,414	1,275	1,257	1,540	1,771	2,215	2,558
Total Liabilities	3,773	4,322	4,490	5,041	5,531	5,854	5,954	5,697	6,805	7,512	8,498	9,606
Fixed Assets	919	1,234	1,289	1,500	2,019	2,013	2,264	2,185	2,204	2,222	2,295	2,370
CWIP	96	171	519	463	38	159	80	128	61	41	97	78
Investments	495	465	334	707	549	285	824	369	615	1,085	1,215	957
Other Assets	2,262	2,452	2,348	2,370	2,925	3,397	2,786	3,015	3,925	4,164	4,891	6,200
Total Assets	3,773	4,322	4,490	5,041	5,531	5,854	5,954	5,697	6,805	7,512	8,498	9,606

Below is a detailed analysis of the balance sheet data for Cummins India Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

For Equity Capital, as of Mar 2025, the value is 55.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 55.00 Cr..
For Reserves, as of Mar 2025, the value is 6,963.00 Cr.. The value appears strong and on an upward trend. It has increased from 6,108.00 Cr. (Mar 2024) to 6,963.00 Cr., marking an increase of 855.00 Cr..
For Borrowings, as of Mar 2025, the value is 30.00 Cr.. The value appears to be improving (decreasing). Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has decreased from 120.00 Cr. (Mar 2024) to 30.00 Cr., marking a decrease of 90.00 Cr..
For Other Liabilities, as of Mar 2025, the value is 2,558.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 2,215.00 Cr. (Mar 2024) to 2,558.00 Cr., marking an increase of 343.00 Cr..
For Total Liabilities, as of Mar 2025, the value is 9,606.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 8,498.00 Cr. (Mar 2024) to 9,606.00 Cr., marking an increase of 1,108.00 Cr..
For Fixed Assets, as of Mar 2025, the value is 2,370.00 Cr.. The value appears strong and on an upward trend. It has increased from 2,295.00 Cr. (Mar 2024) to 2,370.00 Cr., marking an increase of 75.00 Cr..
For CWIP, as of Mar 2025, the value is 78.00 Cr.. The value appears to be declining and may need further review. It has decreased from 97.00 Cr. (Mar 2024) to 78.00 Cr., marking a decrease of 19.00 Cr..
For Investments, as of Mar 2025, the value is 957.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,215.00 Cr. (Mar 2024) to 957.00 Cr., marking a decrease of 258.00 Cr..
For Other Assets, as of Mar 2025, the value is 6,200.00 Cr.. The value appears strong and on an upward trend. It has increased from 4,891.00 Cr. (Mar 2024) to 6,200.00 Cr., marking an increase of 1,309.00 Cr..
For Total Assets, as of Mar 2025, the value is 9,606.00 Cr.. The value appears strong and on an upward trend. It has increased from 8,498.00 Cr. (Mar 2024) to 9,606.00 Cr., marking an increase of 1,108.00 Cr..

Notably, the Reserves (6,963.00 Cr.) exceed the Borrowings (30.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operating Activity +	361	498	692	746	634	550	599	788	707	811	1,280	1,689
Cash from Investing Activity +	55	-56	-214	-482	-133	16	-202	25	-574	87	-247	-581
Cash from Financing Activity +	-426	-423	-468	-225	-473	-523	-411	-872	-77	-684	-1,133	-1,166
Net Cash Flow	-9	19	10	39	29	43	-14	-60	56	214	-100	-58

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	835.00	697.00	732.00	775.00	551.00	486.00	555.00	86.00	567.00	468.00	-372.00	-119.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	68	72	78	73	69	95	82	80	91	74	75	85
Inventory Days	67	83	92	74	63	60	63	62	74	65	62	59
Days Payable	69	73	81	69	68	85	83	75	96	89	80	89
Cash Conversion Cycle	66	82	88	78	64	71	62	67	68	50	57	55
Working Capital Days	40	43	56	78	66	75	78	74	73	62	53	53
ROCE %	42%	33%	31%	29%	25%	21%	24%	17%	19%	21%	27%	35%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024
Promoters	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%
FIIs	10.52%	10.35%	10.37%	12.20%	13.99%	14.37%	16.45%	16.51%	17.36%	17.95%	17.50%	18.09%
DIIs	25.16%	25.05%	26.54%	24.99%	23.61%	23.76%	21.97%	23.36%	22.86%	22.24%	22.50%	21.80%
Government	0.20%	0.20%	0.20%	0.20%	0.20%	0.20%	0.20%	0.20%	0.14%	0.14%	0.11%	0.10%
Public	13.12%	13.40%	11.90%	11.61%	11.20%	10.67%	10.36%	8.93%	8.63%	8.66%	8.89%	9.00%
No. of Shareholders	1,11,184	1,09,067	1,19,027	1,17,186	1,22,448	1,19,883	1,28,971	1,17,905	1,20,043	1,50,097	1,64,943	1,77,228

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Kotak Emerging Equity Fund - Regular Plan	5,863,399	4.5	1920.53	5,863,399	2025-04-22 17:25:37	0%
HDFC Mid-Cap Opportunities Fund - Regular Plan	3,707,341	1.91	1214.32	3,707,341	2025-04-22 13:31:13	0%
Axis Midcap Fund	2,800,715	3.44	917.36	2,800,715	2025-04-22 17:25:37	0%
SBI Blue Chip Fund	2,700,000	1.95	884.37	2,700,000	2025-04-22 17:25:37	0%
Kotak Equity Opportunities Fund - Regular Plan	1,825,000	2.78	597.77	1,825,000	2025-04-22 17:25:37	0%
SBI Long Term Equity Fund	1,663,190	2.33	544.77	1,663,190	2025-04-22 17:25:38	0%
Nippon India Growth Fund	1,300,000	1.59	425.81	1,300,000	2025-04-22 17:25:38	0%
Sundaram Mid Cap Fund	1,245,057	3.8	407.81	1,245,057	2025-04-22 17:25:38	0%
Sundaram Mid Cap Fund - Institutional Plan	1,245,057	3.8	407.81	1,245,057	2025-04-22 17:25:38	0%
ICICI Prudential Bluechip Fund	1,018,741	0.61	333.68	1,018,741	2025-04-22 17:25:38	0%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	62.07	44.31	33.68	22.91	25.45
Diluted EPS (Rs.)	62.07	44.31	33.68	22.91	25.45
Cash EPS (Rs.)	58.97	41.93	35.29	23.42	25.39
Book Value[Excl.RevalReserv]/Share (Rs.)	238.54	207.73	185.60	167.80	158.80
Book Value[Incl.RevalReserv]/Share (Rs.)	238.54	207.73	185.60	167.80	158.80
Revenue From Operations / Share (Rs.)	324.68	280.38	222.62	157.29	187.28
PBDIT / Share (Rs.)	77.48	56.13	40.81	30.87	30.54
PBIT / Share (Rs.)	71.74	51.00	35.92	26.29	26.19
PBT / Share (Rs.)	70.69	49.90	40.25	25.68	24.72
Net Profit / Share (Rs.)	53.23	36.80	30.40	18.83	21.04
NP After MI And SOA / Share (Rs.)	62.07	44.31	33.68	22.91	25.45
PBDIT Margin (%)	23.86	20.01	18.33	19.62	16.30
PBIT Margin (%)	22.09	18.19	16.13	16.71	13.98
PBT Margin (%)	21.77	17.79	18.08	16.32	13.19
Net Profit Margin (%)	16.39	13.12	13.65	11.97	11.23
NP After MI And SOA Margin (%)	19.11	15.80	15.13	14.56	13.59
Return on Networth / Equity (%)	26.02	21.32	18.14	13.65	16.02
Return on Capital Employeed (%)	28.76	23.45	18.54	15.03	15.68
Return On Assets (%)	19.18	15.50	13.12	10.66	11.38
Total Debt / Equity (X)	0.01	0.06	0.07	0.00	0.11
Asset Turnover Ratio (%)	1.07	1.03	0.96	0.72	0.85
Current Ratio (X)	2.89	2.70	2.53	2.94	2.16
Quick Ratio (X)	2.43	2.22	2.11	2.43	1.79
Inventory Turnover Ratio (X)	5.19	5.57	5.56	4.13	4.33
Dividend Payout Ratio (NP) (%)	28.99	27.08	23.74	30.55	66.78
Dividend Payout Ratio (CP) (%)	26.54	24.27	20.73	25.45	57.03
Earning Retention Ratio (%)	71.01	72.92	76.26	69.45	33.22
Cash Earning Retention Ratio (%)	73.46	75.73	79.27	74.55	42.97
Interest Coverage Ratio (X)	78.38	95.81	93.03	51.06	40.28
Interest Coverage Ratio (Post Tax) (X)	54.91	64.70	59.41	32.14	29.70
Enterprise Value (Cr.)	81968.98	44122.46	30121.05	24546.27	9047.57
EV / Net Operating Revenue (X)	9.11	5.68	4.88	5.63	1.74
EV / EBITDA (X)	38.17	28.36	26.63	28.68	10.69
MarketCap / Net Operating Revenue (X)	9.26	5.81	5.05	5.85	1.74
Retention Ratios (%)	71.00	72.91	76.25	69.44	33.21
Price / BV (X)	12.61	7.84	6.05	5.48	2.05
Price / Net Operating Revenue (X)	9.26	5.81	5.05	5.85	1.74
EarningsYield	0.02	0.02	0.02	0.02	0.07

After reviewing the key financial ratios for Cummins India Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Mar 24, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 2.00.
For Basic EPS (Rs.), as of Mar 24, the value is 62.07. This value is within the healthy range. It has increased from 44.31 (Mar 23) to 62.07, marking an increase of 17.76.
For Diluted EPS (Rs.), as of Mar 24, the value is 62.07. This value is within the healthy range. It has increased from 44.31 (Mar 23) to 62.07, marking an increase of 17.76.
For Cash EPS (Rs.), as of Mar 24, the value is 58.97. This value is within the healthy range. It has increased from 41.93 (Mar 23) to 58.97, marking an increase of 17.04.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 238.54. It has increased from 207.73 (Mar 23) to 238.54, marking an increase of 30.81.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 238.54. It has increased from 207.73 (Mar 23) to 238.54, marking an increase of 30.81.
For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 324.68. It has increased from 280.38 (Mar 23) to 324.68, marking an increase of 44.30.
For PBDIT / Share (Rs.), as of Mar 24, the value is 77.48. This value is within the healthy range. It has increased from 56.13 (Mar 23) to 77.48, marking an increase of 21.35.
For PBIT / Share (Rs.), as of Mar 24, the value is 71.74. This value is within the healthy range. It has increased from 51.00 (Mar 23) to 71.74, marking an increase of 20.74.
For PBT / Share (Rs.), as of Mar 24, the value is 70.69. This value is within the healthy range. It has increased from 49.90 (Mar 23) to 70.69, marking an increase of 20.79.
For Net Profit / Share (Rs.), as of Mar 24, the value is 53.23. This value is within the healthy range. It has increased from 36.80 (Mar 23) to 53.23, marking an increase of 16.43.
For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 62.07. This value is within the healthy range. It has increased from 44.31 (Mar 23) to 62.07, marking an increase of 17.76.
For PBDIT Margin (%), as of Mar 24, the value is 23.86. This value is within the healthy range. It has increased from 20.01 (Mar 23) to 23.86, marking an increase of 3.85.
For PBIT Margin (%), as of Mar 24, the value is 22.09. This value exceeds the healthy maximum of 20. It has increased from 18.19 (Mar 23) to 22.09, marking an increase of 3.90.
For PBT Margin (%), as of Mar 24, the value is 21.77. This value is within the healthy range. It has increased from 17.79 (Mar 23) to 21.77, marking an increase of 3.98.
For Net Profit Margin (%), as of Mar 24, the value is 16.39. This value exceeds the healthy maximum of 10. It has increased from 13.12 (Mar 23) to 16.39, marking an increase of 3.27.
For NP After MI And SOA Margin (%), as of Mar 24, the value is 19.11. This value is within the healthy range. It has increased from 15.80 (Mar 23) to 19.11, marking an increase of 3.31.
For Return on Networth / Equity (%), as of Mar 24, the value is 26.02. This value is within the healthy range. It has increased from 21.32 (Mar 23) to 26.02, marking an increase of 4.70.
For Return on Capital Employeed (%), as of Mar 24, the value is 28.76. This value is within the healthy range. It has increased from 23.45 (Mar 23) to 28.76, marking an increase of 5.31.
For Return On Assets (%), as of Mar 24, the value is 19.18. This value is within the healthy range. It has increased from 15.50 (Mar 23) to 19.18, marking an increase of 3.68.
For Total Debt / Equity (X), as of Mar 24, the value is 0.01. This value is within the healthy range. It has decreased from 0.06 (Mar 23) to 0.01, marking a decrease of 0.05.
For Asset Turnover Ratio (%), as of Mar 24, the value is 1.07. It has increased from 1.03 (Mar 23) to 1.07, marking an increase of 0.04.
For Current Ratio (X), as of Mar 24, the value is 2.89. This value is within the healthy range. It has increased from 2.70 (Mar 23) to 2.89, marking an increase of 0.19.
For Quick Ratio (X), as of Mar 24, the value is 2.43. This value exceeds the healthy maximum of 2. It has increased from 2.22 (Mar 23) to 2.43, marking an increase of 0.21.
For Inventory Turnover Ratio (X), as of Mar 24, the value is 5.19. This value is within the healthy range. It has decreased from 5.57 (Mar 23) to 5.19, marking a decrease of 0.38.
For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 28.99. This value is within the healthy range. It has increased from 27.08 (Mar 23) to 28.99, marking an increase of 1.91.
For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 26.54. This value is within the healthy range. It has increased from 24.27 (Mar 23) to 26.54, marking an increase of 2.27.
For Earning Retention Ratio (%), as of Mar 24, the value is 71.01. This value exceeds the healthy maximum of 70. It has decreased from 72.92 (Mar 23) to 71.01, marking a decrease of 1.91.
For Cash Earning Retention Ratio (%), as of Mar 24, the value is 73.46. This value exceeds the healthy maximum of 70. It has decreased from 75.73 (Mar 23) to 73.46, marking a decrease of 2.27.
For Interest Coverage Ratio (X), as of Mar 24, the value is 78.38. This value is within the healthy range. It has decreased from 95.81 (Mar 23) to 78.38, marking a decrease of 17.43.
For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 54.91. This value is within the healthy range. It has decreased from 64.70 (Mar 23) to 54.91, marking a decrease of 9.79.
For Enterprise Value (Cr.), as of Mar 24, the value is 81,968.98. It has increased from 44,122.46 (Mar 23) to 81,968.98, marking an increase of 37,846.52.
For EV / Net Operating Revenue (X), as of Mar 24, the value is 9.11. This value exceeds the healthy maximum of 3. It has increased from 5.68 (Mar 23) to 9.11, marking an increase of 3.43.
For EV / EBITDA (X), as of Mar 24, the value is 38.17. This value exceeds the healthy maximum of 15. It has increased from 28.36 (Mar 23) to 38.17, marking an increase of 9.81.
For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 9.26. This value exceeds the healthy maximum of 3. It has increased from 5.81 (Mar 23) to 9.26, marking an increase of 3.45.
For Retention Ratios (%), as of Mar 24, the value is 71.00. This value exceeds the healthy maximum of 70. It has decreased from 72.91 (Mar 23) to 71.00, marking a decrease of 1.91.
For Price / BV (X), as of Mar 24, the value is 12.61. This value exceeds the healthy maximum of 3. It has increased from 7.84 (Mar 23) to 12.61, marking an increase of 4.77.
For Price / Net Operating Revenue (X), as of Mar 24, the value is 9.26. This value exceeds the healthy maximum of 3. It has increased from 5.81 (Mar 23) to 9.26, marking an increase of 3.45.
For EarningsYield, as of Mar 24, the value is 0.02. This value is below the healthy minimum of 5. There is no change compared to the previous period (Mar 23) which recorded 0.02.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Cummins India Ltd as of June 13, 2025 is: 2,863.37

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of June 13, 2025, Cummins India Ltd is Overvalued by 13.49% compared to the current share price 3,310.00

Intrinsic Value of Cummins India Ltd as of June 13, 2025 is: 3,601.83

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of June 13, 2025, Cummins India Ltd is Undervalued by 8.82% compared to the current share price 3,310.00

Last 5 Year EPS CAGR: 25.79%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 27.00%, which is a positive sign. The company has higher reserves (4,342.67 cr) compared to borrowings (190.33 cr), indicating strong financial stability. The company has shown consistent growth in sales (5.38 cr) and profit (465.85 cr) over the years.	The stock has a high average Working Capital Days of 62.58, which may not be favorable. The stock has a high average Cash Conversion Cycle of 67.33, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Cummins India Ltd:
1. Net Profit Margin: 16.39%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 28.76% (Industry Average ROCE: 28.35%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 26.02% (Industry Average ROE: 21.76%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 54.91
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 2.43
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 48.2 (Industry average Stock P/E: 35.5)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.01
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Cummins India Ltd. is a Public Limited Listed company incorporated on 17/02/1962 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L29112PN1962PLC012276 and registration number is 012276. Currently Company is involved in the business activities of Manufacture of general purpose machinery. Company's Total Operating Revenue is Rs. 10339.40 Cr. and Equity Capital is Rs. 55.44 Cr. for the Year ended 31/03/2025.

INDUSTRY	ADDRESS	CONTACT
Engines	Cummins India Office Campus, Pune Maharashtra 411045	cil.investors@cummins.com http://www.cumminsindia.com

Management
Name	Position Held
Mr. Jennifer Mary Bush	Chairperson
Mr. Ashwath Ram	Managing Director
Mr. Nasser M Munjee	Independent Director
Ms. Rama Bijapurkar	Independent Director
Ms. Rekha	Independent Director
Ms. Lira Goswami	Independent Director
Mr. Sekhar Natarajan	Ind. Non-Executive Director
Mr. Farokh N Subedar	Ind. Non-Executive Director
Mr. Donald Jackson	Non Executive Director
Mr. Bonnie Jean Fetch	Non Executive Director

FAQ

What is the intrinsic value of Cummins India Ltd?

Cummins India Ltd's intrinsic value (as of 13 June 2025) is ₹2863.37 — 13.49% lower the current market price of 3,310.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 91,755 Cr. market cap, FY2025-2026 high/low of ₹4,172/2,580, reserves of 6,963 Cr, and liabilities of 9,606 Cr.

What is the Market Cap of Cummins India Ltd?

The Market Cap of Cummins India Ltd is 91,755 Cr..

What is the current Stock Price of Cummins India Ltd as on 13 June 2025?

The current stock price of Cummins India Ltd as on 13 June 2025 is 3,310.

What is the High / Low of Cummins India Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Cummins India Ltd stocks is ₹4,172/2,580.

What is the Stock P/E of Cummins India Ltd?

The Stock P/E of Cummins India Ltd is 48.2.

What is the Book Value of Cummins India Ltd?

The Book Value of Cummins India Ltd is 253.

What is the Dividend Yield of Cummins India Ltd?

The Dividend Yield of Cummins India Ltd is 1.56 %.

What is the ROCE of Cummins India Ltd?

The ROCE of Cummins India Ltd is 37.7 %.

What is the ROE of Cummins India Ltd?

The ROE of Cummins India Ltd is 28.9 %.

What is the Face Value of Cummins India Ltd?

The Face Value of Cummins India Ltd is 2.00.