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500480: Future Revenue Guidance And Margin Stability Will Support Balanced Assessment

Stable Outlook Expected As Earnings Trends Remain Consistent And Expansion Continues

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500480
AnalystConsensusTarget
Not Invested
Published 18 Nov 2024

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
33.4%
7D
0.3%

Analysts have marginally raised their price target on Cummins India, citing a slightly lower implied discount rate and steady long term growth and profitability assumptions. Together, these factors support a fair value of ₹4,421.74 per share, up from roughly unchanged prior estimates.

What's in the News

  • Cummins India has scheduled a special/extraordinary shareholders meeting on January 5, 2026, to be conducted via postal ballot in India (company filing).
  • The company issued earnings guidance for financial year 2025 to 2026, targeting double digit revenue growth over the previous fiscal year (company guidance).
  • A board meeting on November 6, 2025, will review unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, and will also approve the postal ballot notice and appointment of a scrutinizer (board agenda).

Valuation Changes

  • Fair Value: unchanged at approximately ₹4,421.74 per share, reflecting stable long term assumptions.
  • Discount Rate: fallen slightly from about 14.88 percent to 14.87 percent, modestly lowering the cost of equity used in the model.
  • Revenue Growth: effectively unchanged at around 12.12 percent per year, indicating steady expectations for top line expansion.
  • Net Profit Margin: effectively unchanged at about 19.44 percent, signaling stable long term profitability assumptions.
  • Future P/E: edged down marginally from roughly 58.21x to 58.19x, indicating a virtually unchanged earnings multiple applied to forecasts.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.