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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Cummins India Ltd

About the Company - Cummins India Ltd

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. 6140.40 Cr. and Equity Capital is Rs. 55.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
EnginesCummins India Office Campus, Pune Maharashtra 411045cil.investors@cummins.com
http://www.cumminsindia.com
Management
NamePosition Held
Mr. Steven M ChapmanChairman
Mr. Ashwath RamManaging Director
Mr. Donald JacksonNon Executive Director
Mr. Jennifer Mary BushNon Executive Director
Mr. Bonnie Jean FetchNon Executive Director
Mr. Rajeev BakshiIndependent Director
Mr. Nasser M MunjeeIndependent Director
Ms. Rama BijapurkarIndependent Director
Ms. RekhaIndependent Director
Ms. Lira GoswamiIndependent Director

Basic Stock Data of Cummins India Ltd

Last Updated: May 15, 2024, 7:44 am

Market Cap 97,328 Cr.
Current Price 3,512
High / Low3,528/1,556
Stock P/E68.6
Book Value 204
Dividend Yield0.71 %
ROCE26.8 %
ROE21.6 %
Face Value 2.00
PEG Ratio4.28

Cummins India Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,4241,2471,1841,7271,7351,4941,6871,9512,1811,9262,2091,9002,534
Expenses1,1831,0791,0361,4681,4641,2871,4731,6611,7681,6001,8681,5611,996
Operating Profit242167149259270207214291412326341339538
OPM %17%13%13%15%16%14%13%15%19%17%15%18%21%
Other Income981121876987778685104131117132112
Interest5322352537876
Depreciation32313134353534353437363842
Profit before tax304245303293320244264336479413415426602
Tax %23%24%22%25%25%22%25%25%25%23%24%23%24%
Net Profit234186237220241189199252360318316329455
EPS in Rs8.446.708.547.938.696.827.179.1012.9911.4911.3911.8516.41

Last Updated: May 7, 2024, 11:31 pm

Cummins India Ltd Quarterly Chart

Cummins India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4,1174,5893,9774,4064,7095,0775,0825,6595,1584,3296,1407,7448,215
Expenses3,4203,7543,2803,6743,9344,2764,3454,7954,5673,7295,2606,5026,797
Operating Profit6978356977327758027388645906008801,2431,417
OPM %17%18%18%17%16%16%15%15%11%14%14%16%17%
Other Income175268178287226208279293308349425406484
Interest5541101715162016121624
Depreciation42475380818594110119126134140145
Profit before tax8251,0518189379109089081,0307598081,1591,4921,733
Tax %28%27%27%16%17%19%22%30%17%24%24%24%
Net Profit5917646007867547357087236296188871,1301,323
EPS in Rs21.3327.5721.6528.3527.2126.5025.5626.0722.7022.2931.9940.7647.72
Dividend Payout %52%47%60%49%51%53%59%65%62%67%58%61%

Cummins India Ltd Profit & Loss Yearly Chart

Cummins India Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:9%
3 Years:15%
TTM:17%
Compounded Profit Growth
10 Years:5%
5 Years:11%
3 Years:21%
TTM:40%
Stock Price CAGR
10 Years:19%
5 Years:37%
3 Years:67%
1 Year:114%
Return on Equity
10 Years:19%
5 Years:17%
3 Years:18%
Last Year:22%

Last Updated: May 15, 2024, 7:44 am

Cummins India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital55555555555555555555555555
Reserves1,9882,3312,5102,8313,4263,6873,9314,0754,1204,3514,7975,3135,596
Borrowings0000025125230950433412373271
Other Liabilities1,0591,2831,2081,4351,0091,0481,2941,4141,2751,2571,5401,7711,943
Total Liabilities3,1023,6703,7734,3224,4905,0415,5315,8545,9545,6976,8057,5127,865
Fixed Assets4654939191,2341,2891,5002,0192,0132,2642,1852,2042,2222,301
CWIP50121961715194633815980128614149
Investments5986284954653347075492858243696151,0851,330
Other Assets1,9902,4282,2622,4522,3482,3702,9253,3972,7863,0153,9254,1644,186
Total Assets3,1023,6703,7734,3224,4905,0415,5315,8545,9545,6976,8057,5127,865

Cummins India Ltd Reserves and Borrowings Chart

Cummins India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 442529361498692746634550599788707811
Cash from Investing Activity 8-21955-56-214-482-13316-20225-57487
Cash from Financing Activity -351-359-426-423-468-225-473-523-411-872-77-684
Net Cash Flow100-49-91910392943-14-6056214

Cummins India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days606872787369958280917475
Inventory Days786783927463606362746562
Days Payable716973816968858375968980
Cash Conversion Cycle676682887864716267685057
Working Capital Days424043567866757874736253
ROCE %39%42%33%31%29%25%21%24%17%19%21%27%

Cummins India Ltd Financial Efficiency Indicators Chart

Cummins India Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%
FIIs11.69%11.97%12.54%10.52%10.35%10.37%12.20%13.99%14.37%16.45%16.51%17.36%
DIIs24.37%24.41%23.76%25.16%25.05%26.54%24.99%23.61%23.76%21.97%23.36%22.86%
Government0.22%0.20%0.20%0.20%0.20%0.20%0.20%0.20%0.20%0.20%0.20%0.14%
Public12.72%12.42%12.50%13.12%13.40%11.90%11.61%11.20%10.67%10.36%8.93%8.63%
No. of Shareholders92,95490,7941,00,7391,11,1841,09,0671,19,0271,17,1861,22,4481,19,8831,28,9711,17,9051,20,043

Cummins India Ltd Shareholding Pattern Chart

No. of Cummins India Ltd Shareholders

Cummins India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan58633992.93994.61
SBI Blue Chip Fund30094381.29510.49
HDFC Mid-Cap Opportunities Fund - Regular Plan29556231.03501.36
Axis Midcap Fund28007152.1475.09
SBI Long Term Equity Fund27631902.89468.72
Kotak Equity Opportunities Fund - Regular Plan18250002309.57
Sundaram Mid Cap Fund13052212.52221.4
Sundaram Mid Cap Fund - Institutional Plan13052212.52221.4
ICICI Prudential Multicap Fund11157042.14189.26
Franklin India Focused Equity Fund10786971.92182.98

Cummins India Ltd ROCE Trend

Cummins India Ltd EPS Trend

Cummins India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)44.3133.6822.9125.4526.79
Diluted EPS (Rs.)44.3133.6822.9125.4526.79
Cash EPS (Rs.)41.9335.2923.4225.3927.46
Book Value[Excl.RevalReserv]/Share (Rs.)207.73185.60167.80158.80154.51
Book Value[Incl.RevalReserv]/Share (Rs.)207.73185.60167.80158.80154.51
Revenue From Operations / Share (Rs.)280.38222.62157.29187.28205.53
PBDIT / Share (Rs.)56.1340.8130.8730.5439.83
PBIT / Share (Rs.)51.0035.9226.2926.1935.82
PBT / Share (Rs.)49.9040.2525.6824.7235.22
Net Profit / Share (Rs.)36.8030.4018.8321.0423.45
NP After MI And SOA / Share (Rs.)44.3133.6822.9125.4526.79
PBDIT Margin (%)20.0118.3319.6216.3019.37
PBIT Margin (%)18.1916.1316.7113.9817.42
PBT Margin (%)17.7918.0816.3213.1917.13
Net Profit Margin (%)13.1213.6511.9711.2311.40
NP After MI And SOA Margin (%)15.8015.1314.5613.5913.03
Return on Networth / Equity (%)21.3218.1413.6516.0217.33
Return on Capital Employeed (%)23.4518.5415.0315.6821.93
Return On Assets (%)15.5013.1210.6611.3812.25
Total Debt / Equity (X)0.060.070.000.110.07
Asset Turnover Ratio (%)1.060.960.720.850.97
Current Ratio (X)2.702.532.942.162.23
Quick Ratio (X)2.222.112.431.791.82
Inventory Turnover Ratio (X)5.675.564.134.334.63
Dividend Payout Ratio (NP) (%)27.0823.7430.5566.7863.45
Dividend Payout Ratio (CP) (%)24.2720.7325.4557.0355.19
Earning Retention Ratio (%)72.9276.2669.4533.2236.55
Cash Earning Retention Ratio (%)75.7379.2774.5542.9744.81
Interest Coverage Ratio (X)95.8193.0351.0640.2865.84
Interest Coverage Ratio (Post Tax) (X)64.7059.4132.1429.7039.76
Enterprise Value (Cr.)44122.4630121.0524546.279047.5720227.33
EV / Net Operating Revenue (X)5.684.885.631.743.55
EV / EBITDA (X)28.3626.6328.6810.6918.32
MarketCap / Net Operating Revenue (X)5.815.055.851.743.63
Retention Ratios (%)72.9176.2569.4433.2136.54
Price / BV (X)7.846.055.482.054.82
Price / Net Operating Revenue (X)5.815.055.851.743.63
EarningsYield0.020.020.020.070.03

Cummins India Ltd Profitability Ratios (%)

Cummins India Ltd Liquidity Ratios

Cummins India Ltd Liquidity Ratios (%)

Cummins India Ltd Interest Coverage Ratios (%)

Cummins India Ltd Valuation Ratios

Fair Value

Fair Value: ₹3,044.25

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.

Overvalued: 13.32% compared to the current price ₹3512

Intrinsic Value: ₹3,531.96

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 0.57% compared to the current price ₹3512

Last 5 Year EPS CAGR: 16.02%

*Investments are subject to market risks

Strength and Weakness of Cummins India Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 27.33%, which is a positive sign.
  2. The company has higher reserves (3,765.85 cr) compared to borrowings (185.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.92 cr) and profit (529.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 61.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 68.33, which may not be favorable.

FAQ

What is the latest fair value of Cummins India Ltd?

The latest fair value of Cummins India Ltd is ₹3044.25.

What is the Market Cap of Cummins India Ltd?

The Market Cap of Cummins India Ltd is 97,328 Cr..

What is the current Stock Price of Cummins India Ltd as on 18 May 2024?

The current stock price of Cummins India Ltd as on 18 May 2024 is 3,512.

What is the High / Low of Cummins India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cummins India Ltd stocks is ₹3,528/1,556.

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

The Stock P/E of Cummins India Ltd is 68.6.

What is the Book Value of Cummins India Ltd?

The Book Value of Cummins India Ltd is 204.

What is the Dividend Yield of Cummins India Ltd?

The Dividend Yield of Cummins India Ltd is 0.71 %.

What is the ROCE of Cummins India Ltd?

The ROCE of Cummins India Ltd is 26.8 %.

What is the ROE of Cummins India Ltd?

The ROE of Cummins India Ltd is 21.6 %.

What is the Face Value of Cummins India Ltd?

The Face Value of Cummins India Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Cummins India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE