Cummins India Limited

NSEI:CUMMINSIND Stock Report

Mkt Cap: ₹486.3b

We’ve recently updated our valuation analysis.

Cummins India Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CUMMINSIND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6x
Enterprise Value/EBITDA29.9x
PEG Ratio4.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CUMMINSIND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.6x
ASHOKLEY Ashok Leyland
34.5x24.9%₹428.2b
CRAFTSMAN Craftsman Automation
32.8x26.1%₹72.9b
500048 BEML
37.8x30.0%₹59.7b
COCHINSHIP Cochin Shipyard
21.4x19.7%₹65.1b
CUMMINSIND Cummins India
39.6x9.6%₹486.3b

Price-To-Earnings vs Peers: CUMMINSIND is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the peer average (31.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.8%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.8%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: CUMMINSIND is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the Indian Machinery industry average (26.7x)

Price to Earnings Ratio vs Fair Ratio

What is CUMMINSIND'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.

CUMMINSIND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.6x
Fair PE Ratio28.5x

Price-To-Earnings vs Fair Ratio: CUMMINSIND is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).

Share Price vs Fair Value

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

Below Fair Value: CUMMINSIND (₹1755.35) is trading above our estimate of fair value (₹472.97)

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

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 CUMMINSIND forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,755.35
₹1,607.91
-8.4%
18.0%₹2,000.00₹1,145.00n/a23
May ’24₹1,575.65
₹1,529.41
-2.9%
18.4%₹1,890.00₹980.00n/a22
Apr ’24₹1,629.60
₹1,517.68
-6.9%
19.4%₹1,890.00₹980.00n/a22
Mar ’24₹1,602.50
₹1,513.87
-5.5%
19.1%₹1,890.00₹980.00n/a23
Feb ’24₹1,426.50
₹1,345.73
-5.7%
17.9%₹1,746.00₹940.00n/a22
Jan ’24₹1,380.40
₹1,338.09
-3.1%
17.2%₹1,583.00₹940.00n/a22
Dec ’23₹1,437.85
₹1,345.19
-6.4%
16.3%₹1,578.00₹940.00n/a21
Nov ’23₹1,348.20
₹1,212.57
-10.1%
18.5%₹1,578.00₹790.00n/a21
Oct ’23₹1,195.85
₹1,212.05
+1.4%
18.5%₹1,578.00₹790.00n/a21
Sep ’23₹1,222.50
₹1,212.41
-0.8%
18.0%₹1,578.00₹790.00n/a22
Aug ’23₹1,222.85
₹1,083.05
-11.4%
15.2%₹1,360.00₹770.00n/a22
Jul ’23₹1,026.10
₹1,075.33
+4.8%
15.7%₹1,284.00₹770.00n/a21
Jun ’23₹1,026.25
₹1,066.50
+3.9%
15.8%₹1,284.00₹770.00n/a20
May ’23₹1,030.45
₹1,041.86
+1.1%
19.4%₹1,324.00₹620.00₹1,575.6521
Apr ’23₹1,136.70
₹1,042.24
-8.3%
19.3%₹1,324.00₹620.00₹1,629.6021
Mar ’23₹957.25
₹1,028.95
+7.5%
18.5%₹1,324.00₹620.00₹1,602.5021
Feb ’23₹952.15
₹979.00
+2.8%
21.1%₹1,300.00₹620.00₹1,426.5021
Jan ’23₹941.80
₹957.91
+1.7%
23.2%₹1,300.00₹590.00₹1,380.4022
Dec ’22₹915.25
₹957.91
+4.7%
23.2%₹1,300.00₹590.00₹1,437.8522
Nov ’22₹912.75
₹953.82
+4.5%
23.0%₹1,300.00₹590.00₹1,348.2022
Oct ’22₹918.10
₹931.68
+1.5%
24.5%₹1,237.00₹530.00₹1,195.8522
Sep ’22₹1,005.95
₹923.78
-8.2%
24.3%₹1,237.00₹530.00₹1,222.5023
Aug ’22₹852.40
₹783.28
-8.1%
24.0%₹1,050.00₹390.00₹1,222.8525
Jul ’22₹889.60
₹768.96
-13.6%
23.8%₹1,050.00₹390.00₹1,026.1024
Jun ’22₹779.85
₹762.50
-2.2%
23.3%₹1,050.00₹390.00₹1,026.2524
May ’22₹837.60
₹740.25
-11.6%
26.2%₹1,078.00₹390.00₹1,030.4524

Analyst Forecast: Target price is lower than the current share price.

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