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5004

Cummins IndiaBSE:500480 Stock Report

Market Cap

₹252.3b

7D

0.2%

1Y

93.4%

Updated

18 Oct, 2021

Data

Company Financials +
500480 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends5/6

500480 Overview

Cummins India Limited designs, manufactures, distributes, and services engines, generator sets, and related technologies in India.

Price History & Performance

Summary of all time highs, changes and price drops for Cummins India
Historical stock prices
Current Share Price₹910.15
52 Week High₹429.00
52 Week Low₹1,065.00
Beta0.97
1 Month Change-9.62%
3 Month Change6.57%
1 Year Change93.38%
3 Year Change31.35%
5 Year Change6.71%
Change since IPO1,533.60%

Recent News & Updates

Shareholder Returns

500480IN MachineryIN Market
7D0.2%3.6%2.3%
1Y93.4%92.7%68.3%

Return vs Industry: 500480 matched the Indian Machinery industry which returned 92.7% over the past year.

Return vs Market: 500480 exceeded the Indian Market which returned 68.3% over the past year.

Price Volatility

Is 500480's price volatile compared to industry and market?
500480 volatility
500480 Beta0.97
Industry Beta0.78
Market Beta1

Stable Share Price: 500480 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 500480's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19623,237Ashwath Ramhttps://www.cummins.com/en/in/company/cummins-india?locset=IN

Cummins India Limited designs, manufactures, distributes, and services engines, generator sets, and related technologies in India. The company operates through three business units: Engine Business, Power Systems Business, and Distribution Business. The Engine Business manufactures and markets diesel and natural gas engines ranging from 50 HP to 600 HP for low, medium, and heavy-duty on-highway commercial vehicle markets, as well as off-highway commercial equipment industry comprising construction and compressor.

Cummins India Fundamentals Summary

How do Cummins India's earnings and revenue compare to its market cap?
500480 fundamental statistics
Market Cap₹252.29b
Earnings (TTM)₹8.29b
Revenue (TTM)₹50.52b

30.4x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500480 income statement (TTM)
Revenue₹50.52b
Cost of Revenue₹32.83b
Gross Profit₹17.70b
Expenses₹9.41b
Earnings₹8.29b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)29.90
Gross Margin35.03%
Net Profit Margin16.41%
Debt/Equity Ratio0.9%

How did 500480 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is Cummins India undervalued compared to its fair value and its price relative to the market?

30.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500480 (₹910.15) is trading above our estimate of fair value (₹700.74)

Significantly Below Fair Value: 500480 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500480 is poor value based on its PE Ratio (30.4x) compared to the Indian Machinery industry average (23.5x).

PE vs Market: 500480 is poor value based on its PE Ratio (30.4x) compared to the Indian market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: 500480 is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: 500480 is overvalued based on its PB Ratio (5.4x) compared to the IN Machinery industry average (1.9x).


Future Growth

How is Cummins India forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500480's forecast earnings growth (8.8% per year) is above the savings rate (6.7%).

Earnings vs Market: 500480's earnings (8.8% per year) are forecast to grow slower than the Indian market (19.2% per year).

High Growth Earnings: 500480's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500480's revenue (10.6% per year) is forecast to grow slower than the Indian market (12.9% per year).

High Growth Revenue: 500480's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500480's Return on Equity is forecast to be low in 3 years time (18.2%).


Past Performance

How has Cummins India performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500480 has high quality earnings.

Growing Profit Margin: 500480's current net profit margins (16.4%) are higher than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: 500480's earnings have declined by 2% per year over the past 5 years.

Accelerating Growth: 500480's earnings growth over the past year (36.8%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: 500480 earnings growth over the past year (36.8%) underperformed the Machinery industry 74.7%.


Return on Equity

High ROE: 500480's Return on Equity (17.8%) is considered low.


Financial Health

How is Cummins India's financial position?


Financial Position Analysis

Short Term Liabilities: 500480's short term assets (₹32.6B) exceed its short term liabilities (₹11.1B).

Long Term Liabilities: 500480's short term assets (₹32.6B) exceed its long term liabilities (₹2.0B).


Debt to Equity History and Analysis

Debt Level: 500480's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: 500480's debt to equity ratio has reduced from 1.8% to 0.9% over the past 5 years.

Debt Coverage: 500480's debt is well covered by operating cash flow (1986.1%).

Interest Coverage: 500480 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Cummins India current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500480's dividend (1.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.33%).

High Dividend: 500480's dividend (1.76%) is in the top 25% of dividend payers in the Indian market (1.35%)


Stability and Growth of Payments

Stable Dividend: 500480's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500480's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), 500480's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500480's dividends in 3 years are forecast to be covered by earnings (66.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Ashwath Ram (50 yo)

2.17yrs

Tenure

₹24,078,000

Compensation

Mr. Ashwath Ram has been Managing Director of Cummins India Limited since August 17, 2019 and has been its Executive Director since 2019. He is Managing Director at Tata Cummins Private Limited. Mr. Ram se...


CEO Compensation Analysis

Compensation vs Market: Ashwath's total compensation ($USD321.03K) is below average for companies of similar size in the Indian market ($USD580.85K).

Compensation vs Earnings: Ashwath's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 500480's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: 500480's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cummins India Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Cummins India Limited
  • Ticker: 500480
  • Exchange: BSE
  • Founded: 1962
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: ₹252.294b
  • Shares outstanding: 277.20m
  • Website: https://www.cummins.com/en/in/company/cummins-india?locset=IN

Number of Employees


Location

  • Cummins India Limited
  • Cummins India Office Campus
  • Tower A, 5th Floor
  • Pune
  • Maharashtra
  • 411045
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:11
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.