Cummins India Ltd.
NSE: CUMMINSINDCummins India Ltd.: A 30-second snapshot
Cummins India is an NSE-listed manufacturer of diesel and natural gas engines, trading at ₹5,680.5 as of the run date — up 93.69% over 12 months and 15.49% over the past 3 months, with the price sitting above both the 50-day moving average (₹5,108.66) and 200-day moving average (₹4,442.59). The company reported 5-year revenue CAGR of 21.9% and earnings CAGR of 22.7%, with ROE of 29.46% (highest among 6 Infrastructure peers) and a profit margin of 19.45%, against a trailing PE of 66.62 and forward PE of 48.95. Debt-to-equity stands at 0.431 with a falling debt trend, and free cash flow has been positive in 4 of the available persistence years.
P/E
66.6
Forward P/E
49.0
ROE
+29.5%
Debt / Equity
0.43
Profit Margin
+19.4%
Div. Yield
+1.1%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
77/100
News
8 headlines · 4 positive · 1 negative
Kotak Securities Downgrades Cummins India to Reduce from Add, Price Target is INR5,600 - marketscreener.com
marketscreener.com
CUMMINSIND: Sales and profit rose sharply in FY 2026, led by data center demand and strong domestic growth - TradingView
TradingView
CUMMINSIND: Sales and profit rose sharply, led by data centers; moderate growth expected amid global risks - TradingView
TradingView
CUMMINSIND: FY 2025-26 saw robust profit growth, higher dividends, and notable one-time items - TradingView
TradingView
Cummins India Ltd stock (INE298A01020): Open interest surges 11% amid buy rating - AD HOC NEWS
AD HOC NEWS
Recent context
- ·FY2026 results (reported May 2026) showed sharp sales and profit growth, driven by data centre demand and domestic infrastructure — headlines cited higher dividends and noted one-time items within the results.
- ·Kotak Securities downgraded CUMMINSIND from Add to Reduce on 2026-06-01, setting a price target of ₹5,600, the sole negative headline in a predominantly positive 8-article news window (4 positive, 3 neutral, 1 negative).
- ·Open interest in CUMMINSIND futures reportedly surged 11% in mid-May 2026, according to one news source, coinciding with the 15.49% 3-month price appreciation.
Strengths
- +ROE of 29.46% ranks 1st of 6 Infrastructure peers in the dataset (BEL 27.56%, CGPOWER 19.56%, L&T 16.95%), supported by a 5-year earnings CAGR of 22.7% and a persistence consistency score of 98.
- +FCF positive in 4 of available persistence years with a falling debt trend and D/E of 0.431 — balance-sheet discipline sustained through the growth cycle.
- +Revenue grew at a 5-year CAGR of 21.9%, with FY2026 results (per news) attributed to data centre demand tailwinds and strong domestic infrastructure spending — two independently expanding end-markets.
- +Quality score of 69 ranks 1st of 6 peer companies (BEL 49, ENRIN 51, ABB 47, CGPOWER 45, L&T 24), while the stock is above both the 50-DMA and 200-DMA with RSI at 60.83 (neutral range), and the 52-week drawdown is contained at -6.88%.
Weaknesses
- −Trailing PE of 66.62 and forward PE of 48.95 are materially above L&T (34.3) and BEL (49.1); any earnings miss or growth deceleration would compress the multiple from an elevated base.
- −A named broker (Kotak Securities) downgraded the stock from Add to Reduce on 2026-06-01, citing a price target of ₹5,600 — 1.4% below the current price — marking a directional shift in at least one institutional view.
- −Analyst mean rating of 2.65 across 23 analysts (1–5 scale, lower = more constructive) indicates a spread of views rather than a consensus at either end of the scale, with the Kotak downgrade suggesting movement toward the less constructive end.
- −Nearest support at ₹5,147.5 is 9.4% below the current price of ₹5,680.5; 1-year price change data is unavailable for all 5 sector peers, making relative momentum comparison impossible with the current dataset.
Open questions
- ?How much of the 5-year earnings CAGR of 22.7% reflects structural market-share gains versus the cyclical upswing in data centre and infrastructure capital expenditure — and how sensitive is that growth rate to a slowdown in either end-market?
- ?At a forward PE of 48.95, what earnings growth rate over the next 3–5 years is implicitly priced in, and how does that compare to consensus estimates across the 23 analysts covering the stock?
- ?The Kotak downgrade to Reduce arrived the same week the stock traded near its 52-week high — does the company's order book or management guidance from the FY2026 results call support or challenge that reassessment?
- ?Given that 1-year price-change data is unavailable for all 5 sector peers, what additional data sources would allow a more complete picture of how CUMMINSIND's 93.69% 1-year return compares to peers like BEL, L&T, and ABB?
Peer comparison: Infrastructure
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CUMMINSIND | Cummins India Ltd.You're viewing | 66.6 | +29.5% | 69 |
| Industry avg | across 5 peers | 79.3 | +21.4% | 43 |
| ENRIN | Siemens Energy India Ltd. | 101.1 | — | 51 |
| BEL | Bharat Electronics Ltd. | 49.1 | +27.6% | 49 |
| ABB | ABB India Ltd. | 95.9 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 116.0 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 34.3 | +16.9% | 24 |
Technical state
Current price
₹5,680.50
SMA 50
₹5,108.66
SMA 200
₹4,442.59
RSI (14)
60.8 (neutral)
From 52w high
-6.9%
1Y return
+93.7%
3M return
+15.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- mediumTrailing PE of 66.62 and forward PE of 48.95 represent a significant premium to sector peers L&T (PE 34.3) and BEL (PE 49.1); the multiple embeds sustained high earnings growth — any deceleration would compress the valuation materially.
- mediumKotak Securities downgraded CUMMINSIND from Add to Reduce on 2026-06-01, citing a price target of ₹5,600 against the current price of ₹5,680.5 — the first named-broker downgrade in the news window and a directional shift from a prior constructive stance.
- lowNo resistance levels are mapped above the current price of ₹5,680.5, consistent with the stock trading within 6.88% of its 52-week high; nearest support is ₹5,147.5 (9.4% below current price), then ₹4,563.5 (19.7% below).
- lowCUMMINSIND ranks 3rd of 6 Infrastructure peers on PE (66.62), trading above the median of peers such as BEL (49.1) and L&T (34.3) but below CGPOWER (116.0), ABB (95.9), and ENRIN (101.1); 1Y price-change data is unavailable for all 5 peers, limiting relative momentum comparison.
Cross-section contradictions
- Revenue growth of 21.9% and earnings growth of 22.7% over 5 years, a consistency score of 98, and ROE of 29.46% (ranked 1st of 6 peers) align with the premium valuation; however, the analyst mean rating of 2.65 across 23 analysts (1–5 scale) and a same-day broker downgrade to Reduce suggest at least part of institutional coverage views the current price as reflecting, or exceeding, fair value.
- Price is 93.69% higher over 12 months and only 6.88% off the 52-week high, yet the nearest mapped support at ₹5,147.5 is 9.4% below current levels — a gap that leaves limited cushion if the valuation multiple contracts toward the sector median.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days