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Cummins India Limited (CUMMINSIND) Fair Value & Analysis

Industrials · IN · Market cap ₹1.5T (≈ $16.0B) · ISIN INE298A01020

What is Cummins India Limited really worth?

CI Cummins India Limited CUMMINSIND · NSE
Price₹5,035
Fair Value₹1,355
Upside−73.1%
Quality76/100

A strong business, but trading 272% above our fair value of ₹1,355.

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Strengths

Healthy Growth (revenue 5y +22.7 %/yr)
Solidly profitable · 19.5% net margin
generates free cash flow
Wide moat 81/100

Risks

!Mixed vs. peers (7/13)
!Weak on dividend: 21 out of 100

For context

·1.06% dividend yield
Evidence: High Range ₹884.32 – ₹2,058

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from ₹1,376 to ₹1,355 (−1.5%) since Jul 18, 2026. Share price −7.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 76/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹2,058). The favourable scenario is already priced in.
  • A fairly wide model range (₹884.32 to ₹2,058) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹5,978 ₹711.91 Fair Value ₹1,355 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹711.91 – ₹5,978 · fair‑value band ₹884.32 – ₹2,058 · the ₹5,035 price screens above the ₹1,355 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Cummins India Limited (CUMMINSIND) currently trades at ₹5,035, while our model-based Fair Value estimate is ₹1,355, implying the stock looks roughly 271.6% overvalued today. The Quality Score stands at 76/100 (high quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of ₹1,647 per share, and 0 of the 26 models we run sit above the ₹5,035 price. Bear case: the Asset-Based group reads lowest at ₹204.85, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Cummins India Limited generated revenue of ₹121B at a net margin of 19.5%. Revenue grew 21.9% year over year. It earns a return on equity of 29.5%. The balance sheet holds a net cash position of ₹23.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹884.32 (bear case) to ₹2,058 (bull case); at ₹5,035, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −73%, CUMMINSIND screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹13.55 per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence ₹1,021 ₹1,842 ₹3,350 75
Growth DCF ₹1,015 ₹1,777 ₹3,162 73
5Y EBITDA Exit ₹959.47 ₹1,647 ₹2,512 71
All 26 models by family
DCF Models
FCF DCF best evidence ₹1,021 ₹1,842 ₹3,350 75
Owner Earnings ₹1,231 ₹2,236 ₹4,084 70
5Y Revenue Exit ₹752.39 ₹1,217 ₹1,843 69
5Y EBITDA Exit ₹959.47 ₹1,647 ₹2,512 71
5Y P/E Exit ₹1,236 ₹2,221 ₹3,359 67
10Y Revenue Exit ₹812.31 ₹1,292 ₹2,019 63
10Y EBITDA Exit ₹973.07 ₹1,615 ₹2,596 64
10Y P/E Exit ₹1,161 ₹2,047 ₹3,326 60
Earnings-Based
Graham-Dodd ₹579.36 ₹2,747 ₹3,779 64
Lynch FV ₹730.00 ₹1,043 ₹1,356 61
PEG = 1.0 ₹730.00 ₹1,043 ₹1,356 57
EPV ₹688.87 ₹795.33 ₹889.95 70
Dividend Discount
Gordon GGM ₹514.62 ₹1,124 ₹1,890 65
DDM Multi-Stage ₹514.62 ₹920.33 ₹1,171 66
Multiples
P/E Multiple ₹1,342 ₹1,789 ₹2,237 63
P/S Multiple ₹657.10 ₹876.13 ₹1,095 58
P/B Multiple ₹1,032 ₹1,376 ₹1,720 55
EV/EBIT ₹1,188 ₹1,555 ₹1,923 63
EV/EBITDA ₹998.36 ₹1,303 ₹1,607 64
EV/Revenue ₹637.61 ₹874.16 ₹1,111 51
Asset-Based
NCAV (Graham) ₹152.87 ₹204.85 ₹305.74 51
Growth DCF
Growth DCF ₹1,015 ₹1,777 ₹3,162 73
Rev-Margin DCF ₹752.39 ₹1,210 ₹1,805 69
Economic Profit
Residual Income ₹551.43 ₹680.64 ₹2,797 64
ROIC Compounder ₹774.43 ₹1,015 ₹1,325 70
Growth Earnings
Growth-Adj P/E ₹1,149 ₹1,642 ₹2,134 67

Widest divergence: DCF Models (₹1,647) versus Asset-Based (₹204.85). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 59.2
P/S ratio 11.5 P/E × margin
EPS (TTM) ₹85.02 price ÷ EPS = P/E 59.2
Dividend yield 1.1% payout 62.9%
Net margin 19.4% FY2026
Return on equity 29.5% TTM
More key figures
Profitability
Return on assets (EBIT) 23.8% avg 5y
Operating margin 24.4% TTM
Growth
Revenue (TTM) ₹121B TTM
Revenue growth (YoY) +21.9% 3y avg +16.0%
EPS growth (YoY) +22.7%
Balance sheet & cash flow
Free cash flow ₹18.8B FY2026
Net cash ₹23.4B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 76/100

Of which business quality 75 · Market factors (momentum, volatility) 64

Profitability 82
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 94
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 63
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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.

Full company description

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 browse generators. The company also offers engine components, such as fuel systems, turbochargers, and engine braking and valvetrain technologies; and aftertreatment emission solutions, as well as operates component care centers. In addition, it offers drivetrain and braking systems comprising axles, brakes, carriers, drivelines, gearboxes and power take-offs, gears, suspensions, tire inflation systems, transfer cases, trailer solutions, and transmissions; parts and sales and services; software and electronic products; and digital products. The company serves commercial buildings, data centers, realty, infrastructure, hospitality, defense, greenhouse, healthcare, manufacturing, marine, mining, oil and gas, rental power, RVs, small business, telecom, water treatment, automotive, power transmission, and distribution industries, as well as end users, original equipment manufacturers (OEMs), channel partners, dealers, and retailers. It exports to the United States, Europe, Mexico, Africa, the Middle East, and China. The company was incorporated in 1962 and is headquartered in Pune, India. Cummins India Limited is a subsidiary of Cummins Inc.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Cummins India Limited reported revenue of ₹121B in FY2026 versus ₹61.7B in FY2022, a compound +18.4%/yr. Reported net income was ₹23.6B in FY2026, compounding +26.1%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹121B
Latest YoY
+16.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.7%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.6%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+16.8% (15.7 + 1.1)
Revenue +18.4%/yr
FY22 ₹61.7B
FY23 ₹77.7B
FY24 ₹90.0B
FY25 ₹104B
FY26 ₹121B
Net income +26.1%/yr
FY22 ₹9.3B
FY23 ₹12.3B
FY24 ₹17.2B
FY25 ₹20.0B
FY26 ₹23.6B
Character of growth · EPS growth decomposed (2015-2026) +11.7 % p.a.
Revenue per share +8.7 %

of which total revenue +8.7 % · buybacks/dilution +0.0 %

EBIT margin −1.0 %
Tax rate −0.5 %
Residual (interest, one-offs) +4.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

CUMMINSIND screens 272% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Cummins India Limited Fair Value". https://www.fairvalue-calculator.com/stock/CUMMINSIND

Peer Group

Specialty Industrial Machinery · 792 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 76 · Top 25%
Fair Value upside −73% · Bottom 25%
Return on equity (TTM) 29% · Top 25%
Return on assets 15% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 13% · Above median
Revenue growth 22% · Top 25%
Dividend yield (TTM) 1.1% · Below median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 59.2× · Pricier than 75% of peers
P/B 17.82× · Pricier than 75% of peers
P/S (TTM) 12.44× · Pricier than 75% of peers
P/FCF 0.8× · Cheaper than 75% of peers
EV/EBITDA 53.8× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 21
PAST100 · sector 28
HEALTH0 · sector 96
DIVIDEND21 · sector 27

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc GEV $941.84 $131.95 −86%
SIE SIE €289.85 €139.77 −52%
Eaton Corporation ETN $402.78 $168.65 −58%
Parker-Hannifin Corporation PH $995.02 $398.69 −60%
Atlas Copco AB ATCOA kr 206.60 kr 112.59 −46%
Cummins Inc CMI $564.40 $348.94 −38%
Illinois Tool Works Inc ITW $281.67 $145.84 −48%
Emerson Electric Co EMR $155.18 $58.44 −62%
AMETEK, Inc AME $236.25 $125.80 −47%
Rockwell Automation, Inc ROK $417.53 $125.76 −70%

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Frequently asked questions

Is Cummins India Limited (CUMMINSIND) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,355 versus a price of ₹5,035, about −73% upside (overvalued).
What is the fair value of CUMMINSIND?
Our model-based fair value for Cummins India Limited is ₹1,355 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹5,035.
What is the quality score of CUMMINSIND?
Cummins India Limited has a Quality Score of 76/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Cummins India Limited (CUMMINSIND)?
Cummins India Limited reported trailing-twelve-month revenue of about ₹121B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CUMMINSIND?
The net profit margin of Cummins India Limited is about 19.5%, meaning it keeps roughly 19.5% of revenue as net income. Based on the latest reported figures.
Does Cummins India Limited pay a dividend?
Cummins India Limited currently shows a dividend yield of about 1.06% relative to its recent price (as of Aug 13, 2026).
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