Cummins India Ltd.
Infrastructure · NSE
52-week range
₹2,669 – ₹5,471
From 52w high
-1.3%
RSI (14)
69.2
vs SMA 50 / 200
↑ 50 · ↑ 200
Cummins India trades at ₹5,401, up 96.3% over the past 12 months and within 1.3% of its 52-week high, with both 50-DMA (₹4,912) and 200-DMA (₹4,302) well below the current price. The trailing PE of 66.5x sits in the middle of its Infrastructure peer range while the 5-year earnings CAGR stands at -13%, pointing to a valuation that prices in future recovery. Profit margin of 19.3%, FCF positive in 4 of the last available years, and a falling debt trend (D/E 0.31) reflect a structurally sound balance sheet despite weak recent growth.
- ✓Profit margin of 19.3% reflects consistent operating efficiency; FCF was positive in 4 of available years and debt-to-equity of 0.31 is the lowest basis visible in the peer group, with debt trend classified as falling.
- ✓Consistency score of 98 out of 100 indicates strong multi-year persistence in maintaining above-threshold metrics across available financial years.
- ✓Stock is trading above both 50-DMA (₹4,912) and 200-DMA (₹4,302), with a 52-week drawdown of only -1.3%, indicating price action has held near recent peaks over a sustained period.
- ✓Forward PE of 54.7x versus trailing PE of 66.5x implies analyst earnings estimates embed meaningful earnings growth in the near term, narrowing the gap to sector mid-range peers such as L&T (34.0x).
- ✗5-year earnings CAGR of -13% and 5-year revenue CAGR of -1.3% indicate the underlying business has not compounded meaningfully over this period, even as the current stock price reflects a significant premium.
- ✗Quality score of 24 ranks last (6th of 6) among Infrastructure peers in the current dataset; ROE data is unavailable, making it impossible to assess capital efficiency relative to peers with available figures (L&T 15.5%, CG Power 19.6%).
- ✗Trailing PE of 66.5x at a stock near its 52-week high with RSI at 69.2 leaves limited valuation buffer if near-term earnings recovery underperforms the implied forward trajectory.
- ✗Analyst mean rating of 2.35 across 23 analysts (1–5 scale, lower = more constructive) is toward the middle of the scale, reflecting a mixed coverage picture rather than uniform conviction.
- ·Cummins India opened a one-year special window in April 2026 for legacy physical share transfers, a shareholder-services measure with no immediate earnings impact.
- ·Business Today cited Cummins India among F&O long ideas in mid-April 2026, reflecting short-term derivatives positioning interest; this represents a third-party trading observation, not a fundamental rating.
- ·News flow over the trailing window is thin (2 articles, both neutral), limiting visibility into recent operational developments; the absence of negative news may itself be informative given the sharp 12-month price appreciation.
- ?Does the 19.3% profit margin and FCF persistence reflect a durable competitive position in diesel engine and power systems, or is it sensitive to cyclical infrastructure capital expenditure?
- ?How much of the 96.3% 12-month price appreciation is attributable to re-rating on sector tailwinds versus company-specific earnings inflection, and what is the historical pattern when that tailwind fades?
- ?Given the 5-year earnings CAGR of -13%, at what pace would earnings need to grow to justify the current 66.5x trailing PE relative to where peers such as L&T (34.0x) trade?
- ?What is the exposure of Cummins India to regulation around diesel engines and emission norms, and how does that interact with the electrification trajectory in the Infrastructure and power sectors?
PE
66.5
Forward PE
54.7
ROE
—
Profit margin
+19.3%
D/E
0.31
Dividend yield
+1.0%
Quality score
24/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.