Cummins India Limited
Quality (90/100) does the heavy lifting; valuation (2/100) is the drag.
ExpensiveOvervaluedCummins India Limited earns a Hold from StocksWizard, with a blended score of 45/100. We put fair value near ₹2,759.5; at ₹5,519 that leaves roughly 50% downside, so the stock screens overvalued by 50%. On 65.0x trailing earnings it sits pricier than the Industrials median of about 29.0x. The price is about 8% below its 52-week high of ₹5,977.92 and 57% above the low of ₹3,510.29. Financial health scores 100/100, in the safe band on the Altman Z-score, with a Piotroski F-score of 5/9. The average analyst target of ₹5,679.7 implies about 3% upside across 23 analysts. It clears 9 of 13 investability checks, with durability 90, valuation 4 and momentum 57 on our 0–100 scales.
Analysis by Ankit Sharma · StocksWizard's own estimates from end-of-day public data — see how we calculate them. For information only, not investment advice.
With a 20% margin of safety, our buy-below price is ₹2,207.6.
Analyst views
1-year price
EOD · 2026-07-3152-week range
-7.68% from the 52-week high.
Price above both moving averages reads as an intact uptrend; below both, the trend is against you.
Verdict pillars
Hold45Piotroski F-score 5/9 — quality of earnings & balance sheet.
Our scores
Durability rewards strong, low-debt, profitable businesses; Valuation rewards stocks cheap vs their sector; Momentum rewards strong price trends.
Investability checklist
- Pass: ROE above 15%: 29.5%
- Pass: Low debt (D/E < 0.5): 0.00x
- Pass: Positive free cash flow
- Pass: Revenue growth > 10%: 22%
- Pass: Earnings growing: 23%
- Pass: Net margin ≥ 10%: 19.4%
- Pass: Current ratio > 1.5: 3.32
- Fail: Below our fair value
- Fail: Margin of safety ≥ 20%
- Pass: Above 200-day average
- Fail: Above 50-day average
- No data: Positive 1-year return
- Pass: Altman Z in safe zone: Z 35.23
- Fail: Piotroski ≥ 7: 5/9
Quarterly results
Annual financials
Shareholding
- Promoter51.3%
- Institutions29.0%
- Public & other19.7%
Promoter holding via insider stake; institutional via reported holdings.
Key fundamentals
Bull case vs bear case
Bull case
Strengths
- Strong return on equity (29.5%).
- Lightly leveraged balance sheet.
- Healthy profit margin (19.4%).
- Financially solid — Altman Z 35.23.
Opportunities
- Earnings growing (23% YoY).
- Revenue growing (22% YoY).
Bear case
Threats
- Rich valuation versus sector peers.
- Trades ~50% above our estimated fair value.
About Cummins India Limited
Cummins India Limited engages in the design, manufacture, distribution, and service of engines, generator sets, and related technologies in India, Nepal, and Bhutan. The company operates through two segments, Engines and Lubes. It provides accelera, G-drive, fire pump drive, hydrogen, and natural gas engines; and generators and power systems, including integrated power systems, alternators, transfer switches, generator set controls, system level controls and switchgears, and
Cummins India Limited — frequently asked questions
Is Cummins India Limited a buy, hold or sell?
StocksWizard currently rates Cummins India Limited (CUMMINSIND) a Hold, based on a blended score of 45/100 across valuation, quality, momentum and price trend. This is our own model-based view, not investment advice.
What is Cummins India Limited's fair value?
Our blended DCF and relative-valuation model estimates Cummins India Limited's fair value at about ₹2,759.5, versus a current price of ₹5,519 — roughly 50% downside. On that basis the stock looks overvalued by 50%.
Is Cummins India Limited financially healthy?
Cummins India Limited scores 100/100 on our financial-health model, placing it in the safe band on the Altman Z-score, with a Piotroski F-score of 5/9.
How has Cummins India Limited's share price performed?
Cummins India Limited is up 6% over three months, and last traded at ₹5,519. Past performance doesn't predict future returns.
More in Industrials
View allOur verdict, fair value, financial-health and checklist are StocksWizard's own estimates, computed from public end-of-day data using standard models (DCF, relative valuation, Altman Z, Piotroski). For information only — not investment advice or a recommendation. Verify independently before investing.