Cummins India Ltd’s fundamental analysis highlights key financial metrics: Market Cap of ₹104,084.44 crore, PE Ratio of 60.49, Debt to Equity of 1.92, and Return on Equity of 27.82%. These indicators reflect the company’s financial health and market valuation.
Cummins India Ltd Overview
Cummins India Ltd is an Indian manufacturer of diesel and natural gas engines for power generation, industrial, and automotive markets. It operates in the engineering sector, specializing in engine manufacturing, power systems, and distribution services.
The company is listed on both the NSE and BSE. With a market capitalization of ₹104,084.44 crore, it’s currently 11.11% away from its 52-week high and 127.11% away from its 52-week low.
Cummins India Ltd Financial Results
Cummins India Ltd reported a revenue of ₹9,000 crores in FY24, a 15.79% increase from ₹7,772 crores in FY23. The company’s net profit also rose by 40.18% to ₹1,721 crores. Total assets grew to ₹8,971 crores from ₹7,919 crores, reflecting financial stability.
1. Revenue Trend: Cummins India Ltd’s sales grew from ₹7,772 Crores in FY23 to ₹9,000 Crores in FY24, indicating a steady growth trajectory. This reflects a positive trend in the company’s operating performance, supported by efficient expense management.
2. Equity and Liabilities: The company’s equity capital remained stable at ₹55.44 Crores for both FY23 and FY24. Total liabilities increased from ₹7,919 Crores in FY23 to ₹8,971 Crores in FY24, showing a balanced approach to managing debt and obligations.
3. Profitability: Operating profit for FY24 stood at ₹1,770 Crores, up from ₹1,248 Crores in FY23. The operating profit margin (OPM) also improved from 15.44% to 18.87%, reflecting enhanced efficiency and cost management.
4. Earnings per Share (EPS): EPS increased significantly from ₹44.31 in FY23 to ₹62.07 in FY24, showcasing improved profitability and returns for shareholders. This growth in EPS highlights the company’s strong earnings performance.
5. Return on Net Worth (RoNW): The company’s RoNW improved as a result of increased profitability, driven by higher net profit in FY24 (₹1,721 Crores) compared to FY23 (₹1,228 Crores), indicating strong shareholder returns.
6. Financial Position: Cummins India Ltd’s total assets increased from ₹7,919 Crores in FY23 to ₹8,971 Crores in FY24, supported by growth in both current and noncurrent assets, which reflects the company’s strong financial health.
Cummins India Ltd. Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 9,000 | 7,772 | 6,171 |
| Expenses | 7,231 | 6,524 | 5,283 |
| Operating Profit | 1,770 | 1,248 | 888.06 |
| OPM % | 18.87 | 15.44 | 13.85 |
| Other Income | 376.37 | 293.85 | 375.55 |
| EBITDA | 2,148 | 1,556 | 1,131 |
| Interest | 27.4 | 16.24 | 12.16 |
| Depreciation | 159.18 | 142.04 | 135.62 |
| Profit Before Tax | 1,959 | 1,383 | 1,116 |
| Tax % | 24.7 | 26.25 | 24.49 |
| Net Profit | 1,721 | 1,228 | 933.74 |
| EPS | 62.07 | 44.31 | 33.68 |
| Dividend Payout % | 61.22 | 56.42 | 54.93 |
* Consolidated Figures in Rs. Crores
Cummins India Ltd. Company Metrics
Cummins India Ltd’s company metrics include a market capitalization of ₹104,084.44 crore, a book value per share of ₹222, and a face value of ₹2. With a debt-to-equity ratio of 1.92, a return on equity of 27.82%, and a 1.01% dividend yield, these figures underscore the company’s financial position and investment profile.
Market Capitalization:
Market Capitalization represents the total market value of Cummins India’s outstanding shares, amounting to ₹104,084.44 crore.
Book Value:
The book value per share of Cummins India is ₹222, indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Cummins India’s shares is ₹2, which is the original cost of the shares as stated on the certificate.
Asset Turnover Ratio:
The asset turnover ratio of 1.14 measures how efficiently Cummins India uses its assets to generate revenue.
Total Debt:
The total debt of ₹126.98 crore represents the sum of all short-term and long-term debt obligations of Cummins India.
Return on Equity (ROE):
The ROE of 27.82% measures Cummins India’s profitability in generating income from its equity investments.
EBITDA (Q):
The quarterly EBITDA of ₹644.37 crore represents Cummins India’s earnings before interest, taxes, depreciation, and amortization.
Dividend Yield:
The dividend yield of 1.01% shows the annual dividend payment as a percentage of Cummins India’s current share price, indicating the return on investment from dividends alone.
Cummins India Ltd Stock Performance
Cummins India Ltd delivered strong returns over various periods. In 1 year, the return was 121%, over 3 years it was 55.9%, and over 5 years, it was 46.4%. This showcases the company’s potential for high returns over different investment horizons.
| Period | Return on Investment (%) |
| 1 Year | 121 |
| 3 Years | 55.9 |
| 5 Years | 46.4 |
For example, if you had invested ₹1,000 in Cummins India Ltd:
1 year ago, it would now be worth ₹2,210.
3 years ago, it would have grown to ₹1,559.
5 years ago, it would now be worth ₹1,464.
Cummins India Ltd Peer Comparison
Cummins India Ltd stands out with a market cap of ₹1,06,156.54 crores and a P/E ratio of 60.07. Its 1-year return of 121.12% surpasses peers like Kirloskar Oil (170.63%) and Swaraj Engines (60.07%). While Greaves Cotton lags behind, Cummins excels with an ROE of 28.11%.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Cummins India | 3829.6 | 106156.54 | 60.07 | 28.11 | 63.66 | 121.12 | 35.23 | 1 |
| Kirloskar Oil | 1289.15 | 18706.49 | 39.37 | 17.7 | 32.81 | 170.63 | 14.97 | 0.46 |
| Greaves Cotton | 185.35 | 4309.09 | 0 | 1.62 | -5.17 | 29.58 | 3.72 | 1.06 |
| Swaraj Engines | 3295.8 | 4003.5 | 28.56 | 38.58 | 115.37 | 60.07 | 51.64 | 2.88 |
Cummins India Shareholding Pattern
Cummins India Ltd’s shareholding pattern as of June 2024 shows promoters holding steady at 51.00%. Foreign Institutional Investors (FII) increased to 17.95% from 16.51% in December 2023. Domestic Institutional Investors (DII) hold 22.38%, with retail and others at 8.66%.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 51.00 | 51.00 | 51.00 |
| FII | 17.95 | 17.36 | 16.51 |
| DII | 22.38 | 23.00 | 23.56 |
| Retail & others | 8.66 | 8.63 | 8.93 |
Cummins India History
Cummins India Limited is a prominent manufacturer of diesel and natural gas engines for various markets including power generation, industrial, and automotive sectors. The company operates through three main business units: engine, power systems, and distribution, each catering to specific market needs.
The engine business unit produces engines ranging from 60 horsepower to higher capacities, serving both on-highway commercial vehicles and off-highway equipment industries. This diverse range allows Cummins India to meet the needs of various sectors, from construction to compressors.
The power systems business focuses on high-horsepower engines and power generation systems, offering solutions for marine, railways, defense, and mining applications. The distribution business complements these offerings by providing products, packages, and services to ensure optimal equipment uptime, showcasing Cummins India’s commitment to comprehensive customer support.
How To Invest In Cummins India Ltd Share?
To invest in Cummins India shares, open a demat account with Alice Blue. Research the company’s fundamentals, financial performance, and position in the engine manufacturing industry. Analyze historical stock data and compare it with industry peers.
Determine your investment strategy based on your financial goals and risk tolerance. Consider factors such as the company’s market share, product portfolio, and growth prospects in the automotive and power generation sectors. Decide on the investment amount and timing.
Place your order through the broker’s platform. Regularly monitor your investment, staying updated on company news, quarterly results, and industry trends. Consider seeking advice from a financial advisor for personalized guidance and to ensure your investment aligns with your overall portfolio strategy.
Cummins India Limited Fundamental Analysis – FAQs
Cummins India Ltd’s fundamental analysis reveals a Market Cap of ₹104,084.44 crore, PE Ratio of 60.49, Debt to Equity of 1.92, and Return on Equity of 27.82%. These metrics provide insights into the company’s financial health, profitability, and market valuation.
Cummins India Ltd’s market capitalization is ₹104,084.44 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current stock price by the number of outstanding shares.
Cummins India Limited is a leading manufacturer of diesel and natural gas engines, power generation systems, and related components. It serves various markets including automotive, industrial, and power generation, offering a wide range of products and services.
Cummins India is a subsidiary of Cummins Inc., a global power leader based in the United States. While Cummins Inc. holds a significant stake, Cummins India is a publicly listed company with ownership distributed among various institutional and individual shareholders.
The main shareholders of Cummins India Ltd. include Cummins Inc. as the promoter, along with institutional investors and public shareholders. For the most current and accurate information on major shareholders, refer to the company’s latest shareholding pattern disclosure.
Cummins India operates in the engineering and manufacturing industry, specifically in the engine and power systems sector. The company specializes in producing diesel and natural gas engines, power generation systems, and related components for various applications.
To invest in Cummins India shares, open a demat account with Alice Blue. Research the company’s performance and industry trends. Decide on your investment strategy. Place your order through the broker’s platform. Regularly monitor your investment, staying informed about market conditions. Consider seeking financial advice for personalized guidance.
Determining if Cummins India is overvalued or undervalued requires analyzing its financials, growth prospects, industry position, and peer comparison. Consider factors like PE ratio, future earnings potential, and industry trends. Consult recent analyst reports for expert opinions on the company’s valuation.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
