Cummins India Limited

NSEI:CUMMINSIND Stock Report

Market Cap: ₹970.8b

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

  • 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 CUMMINSIND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CUMMINSIND (₹3500.7) is trading above our estimate of fair value (₹818.16)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CUMMINSIND. This is calculated by dividing CUMMINSIND's market cap by their current earnings.
What is CUMMINSIND's PE Ratio?
PE Ratio49.8x
Earnings₹19.50b
Market Cap₹970.78b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41.8x
ASHOKLEY Ashok Leyland
26.2x13.1%₹689.6b
COCHINSHIP Cochin Shipyard
45.7x9.5%₹395.7b
ACE Action Construction Equipment
42.1x13.6%₹153.8b
TITAGARH Titagarh Rail Systems
53.2x28.1%₹161.9b
CUMMINSIND Cummins India
49.8x10.1%₹970.8b

Price-To-Earnings vs Peers: CUMMINSIND is expensive based on its Price-To-Earnings Ratio (49.8x) compared to the peer average (41.8x).

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
No more companies available in this PE range
CUMMINSIND 49.8xIndustry Avg. 38.3xNo. of Companies23PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CUMMINSIND is expensive based on its Price-To-Earnings Ratio (49.8x) compared to the Indian Machinery industry average (38.3x).

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 Ratio49.8x
Fair PE Ratio39.7x

Price-To-Earnings vs Fair Ratio: CUMMINSIND is expensive based on its Price-To-Earnings Ratio (49.8x) compared to the estimated Fair Price-To-Earnings Ratio (39.7x).

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₹3,500.70
₹3,660.79
+4.6%
19.9%₹4,867.00₹2,250.00n/a24
Nov ’25₹3,499.75
₹3,601.63
+2.9%
20.9%₹4,658.00₹2,190.00n/a24
Oct ’25₹3,875.85
₹3,570.38
-7.9%
22.2%₹4,658.00₹2,170.00n/a24
Sep ’25₹3,744.70
₹3,525.00
-5.9%
22.6%₹4,658.00₹2,170.00n/a23
Aug ’25₹3,815.00
₹3,339.21
-12.5%
23.7%₹4,443.00₹1,940.00n/a24
Jul ’25₹3,985.80
₹3,293.71
-17.4%
23.4%₹4,384.00₹1,940.00n/a24
Jun ’25₹3,551.30
₹3,257.25
-8.3%
25.8%₹4,384.00₹1,835.00n/a24
May ’25₹3,275.45
₹2,619.08
-20.0%
27.0%₹3,600.00₹1,342.00n/a24
Apr ’25₹3,003.40
₹2,461.17
-18.1%
24.1%₹3,538.00₹1,342.00n/a23
Mar ’25₹2,726.15
₹2,380.41
-12.7%
22.1%₹3,049.00₹1,342.00n/a22
Feb ’25₹2,262.90
₹1,834.60
-18.9%
17.7%₹2,309.00₹1,206.00n/a20
Jan ’25₹1,957.95
₹1,795.33
-8.3%
16.9%₹2,250.00₹1,206.00n/a21
Dec ’24₹1,920.20
₹1,764.35
-8.1%
16.1%₹2,200.00₹1,206.00n/a20
Nov ’24₹1,674.30
₹1,700.86
+1.6%
17.4%₹2,135.00₹1,145.00₹3,499.7521
Oct ’24₹1,696.30
₹1,685.09
-0.7%
17.4%₹2,135.00₹1,145.00₹3,875.8522
Sep ’24₹1,706.00
₹1,693.35
-0.7%
17.1%₹2,135.00₹1,145.00₹3,744.7023
Aug ’24₹1,927.25
₹1,658.13
-14.0%
19.9%₹2,228.00₹1,110.00₹3,815.0024
Jul ’24₹1,943.10
₹1,621.68
-16.5%
17.6%₹2,000.00₹1,145.00₹3,985.8022
Jun ’24₹1,750.70
₹1,612.48
-7.9%
17.5%₹2,000.00₹1,145.00₹3,551.3023
May ’24₹1,575.65
₹1,529.41
-2.9%
18.4%₹1,890.00₹980.00₹3,275.4522
Apr ’24₹1,629.60
₹1,517.68
-6.9%
19.4%₹1,890.00₹980.00₹3,003.4022
Mar ’24₹1,602.50
₹1,513.87
-5.5%
19.1%₹1,890.00₹980.00₹2,726.1523
Feb ’24₹1,426.50
₹1,345.73
-5.7%
17.9%₹1,746.00₹940.00₹2,262.9022
Jan ’24₹1,380.40
₹1,338.09
-3.1%
17.2%₹1,583.00₹940.00₹1,957.9522
Dec ’23₹1,437.85
₹1,345.19
-6.4%
16.3%₹1,578.00₹940.00₹1,920.2021
Nov ’23₹1,348.20
₹1,212.57
-10.1%
18.5%₹1,578.00₹790.00₹1,674.3021

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

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