Cummins India Limited

BSE:500480 Stock Report

Market Cap: ₹931.3b

Cummins India Valuation

Is 500480 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500480 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500480 (₹3373.8) is trading above our estimate of fair value (₹826.86)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500480?

Key metric: As 500480 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500480. This is calculated by dividing 500480's market cap by their current earnings.
What is 500480's PE Ratio?
PE Ratio48x
Earnings₹19.50b
Market Cap₹931.25b

Price to Earnings Ratio vs Peers

How does 500480's PE Ratio compare to its peers?

The above table shows the PE ratio for 500480 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.8x
ASHOKLEY Ashok Leyland
24.6x13.1%₹642.9b
COCHINSHIP Cochin Shipyard
44.6x9.5%₹385.9b
ACE Action Construction Equipment
47.8x13.6%₹177.7b
TITAGARH Titagarh Rail Systems
54.1x27.7%₹169.3b
500480 Cummins India
48x10.0%₹931.3b

Price-To-Earnings vs Peers: 500480 is expensive based on its Price-To-Earnings Ratio (48x) compared to the peer average (42.8x).

Price to Earnings Ratio vs Industry

How does 500480's PE Ratio compare vs other companies in the IN Machinery Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
504220 W.S. Industries (India)
5xn/aUS$90.21m
DIL Debock Industries
4.7xn/aUS$6.04m
531911 Galaxy Agrico Exports
4.8xn/aUS$1.51m
No more companies available in this PE range
500480 48.0xIndustry Avg. 38.3xNo. of Companies23PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500480 is expensive based on its Price-To-Earnings Ratio (48x) compared to the Indian Machinery industry average (38.3x).

Price to Earnings Ratio vs Fair Ratio

What is 500480's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500480 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48x
Fair PE Ratio39.4x

Price-To-Earnings vs Fair Ratio: 500480 is expensive based on its Price-To-Earnings Ratio (48x) compared to the estimated Fair Price-To-Earnings Ratio (39.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500480 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,373.80
₹3,660.79
+8.5%
19.9%₹4,867.00₹2,250.00n/a24
Dec ’25₹3,483.35
₹3,660.79
+5.1%
19.9%₹4,867.00₹2,250.00n/a24
Nov ’25₹3,503.85
₹3,601.63
+2.8%
20.9%₹4,658.00₹2,190.00n/a24
Oct ’25₹3,875.95
₹3,570.38
-7.9%
22.2%₹4,658.00₹2,170.00n/a24
Sep ’25₹3,750.70
₹3,525.00
-6.0%
22.6%₹4,658.00₹2,170.00n/a23
Aug ’25₹3,813.60
₹3,339.21
-12.4%
23.7%₹4,443.00₹1,940.00n/a24
Jul ’25₹3,982.20
₹3,293.71
-17.3%
23.4%₹4,384.00₹1,940.00n/a24
Jun ’25₹3,552.70
₹3,257.25
-8.3%
25.8%₹4,384.00₹1,835.00n/a24
May ’25₹3,275.60
₹2,619.08
-20.0%
27.0%₹3,600.00₹1,342.00n/a24
Apr ’25₹3,004.95
₹2,461.17
-18.1%
24.1%₹3,538.00₹1,342.00n/a23
Mar ’25₹2,725.15
₹2,380.41
-12.7%
22.1%₹3,049.00₹1,342.00n/a22
Feb ’25₹2,262.55
₹1,834.60
-18.9%
17.7%₹2,309.00₹1,206.00n/a20
Jan ’25₹1,954.90
₹1,795.33
-8.2%
16.9%₹2,250.00₹1,206.00n/a21
Dec ’24₹1,919.95
₹1,764.35
-8.1%
16.1%₹2,200.00₹1,206.00₹3,483.3520
Nov ’24₹1,674.20
₹1,700.86
+1.6%
17.4%₹2,135.00₹1,145.00₹3,503.8521
Oct ’24₹1,693.80
₹1,685.09
-0.5%
17.4%₹2,135.00₹1,145.00₹3,875.9522
Sep ’24₹1,706.15
₹1,693.35
-0.8%
17.1%₹2,135.00₹1,145.00₹3,750.7023
Aug ’24₹1,927.30
₹1,658.13
-14.0%
19.9%₹2,228.00₹1,110.00₹3,813.6024
Jul ’24₹1,942.60
₹1,621.68
-16.5%
17.6%₹2,000.00₹1,145.00₹3,982.2022
Jun ’24₹1,750.30
₹1,612.48
-7.9%
17.5%₹2,000.00₹1,145.00₹3,552.7023
May ’24₹1,574.00
₹1,529.41
-2.8%
18.4%₹1,890.00₹980.00₹3,275.6022
Apr ’24₹1,629.10
₹1,517.68
-6.8%
19.4%₹1,890.00₹980.00₹3,004.9522
Mar ’24₹1,602.10
₹1,513.87
-5.5%
19.1%₹1,890.00₹980.00₹2,725.1523
Feb ’24₹1,426.25
₹1,345.73
-5.6%
17.9%₹1,746.00₹940.00₹2,262.5522
Jan ’24₹1,378.35
₹1,338.09
-2.9%
17.2%₹1,583.00₹940.00₹1,954.9022
Dec ’23₹1,437.75
₹1,345.19
-6.4%
16.3%₹1,578.00₹940.00₹1,919.9521

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/24 16:17
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Cummins India Limited is covered by 60 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Dhruv JainAmbit Capital
null nullAnand Rathi Shares and Stock Brokers Limited
null nullAntique Stockbroking Ltd.