Cummins India Limited (CUMMINSIND) Fair Value & Analysis
Industrials · IN · Market cap ₹1.5T (≈ $16.0B) · ISIN INE298A01020
What is Cummins India Limited really worth?
A strong business, but trading 272% above our fair value of ₹1,355.
Strengths
Risks
For context
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)
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.
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.
All 26 models by family
Widest divergence: DCF Models (₹1,647) versus Asset-Based (₹204.85). Highest evidence: FCF DCF (75).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 75 · Market factors (momentum, volatility) 64
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.
of which total revenue +8.7 % · buybacks/dilution +0.0 %
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 →
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.
Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper
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.
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.
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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