Cummins India (CUMMINSIND)

FairStock Score: 51/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Cummins India as a businessman, not a ticker. The balance sheet is pristine: Debt/Equity 0.00, ROE 29.65%, ROCE 36.32%, and FCF ₹1,105 Cr. Those are hallmarks of a durable industrial franchise. Sales grew 17.24% and five-year revenue CAGR is 14.89%, with latest quarter sales ₹3,055 Cr and net profit ₹486 Cr. Promoter holding is 51.00%, and Piotroski F-Score 7/9 plus Altman Z-Score 10.69 suggest financial strength. So the business quality and moat—likely from Cummins’ engine technology/service network—look respectable. Yet Graham would choke on the price. At ₹5,400, market cap is ₹1.50 lakh Cr, P/E 63.29, P/B 17.66, and book value only ₹305.74. Graham Number is ₹704.51; my margin of safety is -595.27%, meaning I’m paying many times asset-based value. DCF intrinsic value is ₹502.60, so the market is pricing in enormous future growth. PEG 4.83 confirms growth is not cheap. EV/EBITDA of -42.02 is odd and, based on given data, not a valuation anchor I can trust. Meanwhile profit growth is -7.85%, so sales growth is not flowing to bottom line. FairStock Score 51/100 (MIXED) matches my caution. I admire the debt-free, high-return engine. But at 63x earnings and a huge premium to Graham/DCF value, the margin of safety is absent. This is a wonderful business potentially priced for perfection. I’d wait for a much wider discount or clear profit recovery before buying.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer