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Cummins India Ltd

NSE: CUMMINSIND BSE: 500480

5399.50

(2.77%)

Sun, 24 May 2026, 05:03 pm

Cummins India Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.5x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Cummins India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Cummins India's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

    health

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    Pros

    • Cummins India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Cummins India is profitable, therefore cash runway is not a concern.
    • Cummins India is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (156.6%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 11x debt.
    • Cummins India's cash and other short term assets cover its long term commitments.
    • Cummins India earns more interest than it pays, coverage of interest payments is not a concern.
    • Cummins India's level of debt (7.3%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • The level of debt compared to net worth has increased over the past 5 years (0% vs 7.3% today).
    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Cummins India board of directors is about average.
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    Cons

    • The average tenure for the Cummins India management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • Cummins India is not covered by any analysts.
      • Cummins India has significant price volatility in the past 3 months.

      past

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      Pros

      • Cummins India used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
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      Cons

      • Cummins India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Cummins India's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Cummins India's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Cummins India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Cummins India's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.

      value

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      Pros

      • NSEI:CUMMINSIND is up 13.3% outperforming the Machinery industry which returned 8.3% over the past month.
      • NSEI:CUMMINSIND is up 13.3% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Cummins India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Cummins India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Cummins India is overvalued based on assets compared to the IN Machinery industry average.
      • Cummins India is overvalued based on earnings compared to the IN Machinery industry average.
      • Cummins India is overvalued based on earnings compared to the India market.
      • CUMMINSIND underperformed the Machinery industry which returned -23.7% over the past year.
      • CUMMINSIND underperformed the Market in India which returned -14.5% over the past year.

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