Is Cummins India a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Cummins India Ltd is a good quality company .

Is Cummins India undervalued or overvalued?

The key valuation ratios of Cummins India Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone .

What is Cummins India share price return in the past 10 years?

Cummins India Ltd share price has appreciated 13.9% annually (CAGR) over the past ten years.

Is Cummins India a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Cummins India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

Cummins India Ltd - Stock Valuation and Financial Performance

Name: Cummins India
Brand: Cummins India

BSE: 500480 | NSE: CUMMINSIND | Diesel Engines | Large Cap

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Cummins India Share Price

₹3,292.25 -6.30 -0.19%
as on 21-Nov'24 14:31

10 Year X-Ray of Cummins India:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	40.7%	24.1%	22.2%	22.2%	24.2%	17.5%	17.6%	23.9%	27.6%	34.8%	-
Value Creation Index ⓘ	2.6	1.2	1.0	1.0	0.8	0.3	0.6	1.1	1.5	2.1	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	4,916	4,720	5,106	5,112	5,697	5,191	4,360	6,171	7,772	9,000	9,521
Sales YoY Gr.	-	-4%	8.2%	0.1%	11.5%	-8.9%	-16%	41.5%	26%	15.8%	-
Adj EPS ⓘ	24.8	25.6	26.2	24.1	25.8	25.2	22.7	30	43.3	60.7	70.3
YoY Gr.	-	2.9%	2.4%	-7.7%	6.8%	-2.1%	-9.8%	32%	44.3%	40.3%	-
BVPS (₹) ⓘ	111.4	130.2	139.7	148.6	154.5	158.8	167.8	185.6	207.7	238.5	251.3
Adj Net Profit ⓘ	688	708	725	669	714	699	630	832	1,200	1,684	1,950
Cash Flow from Ops. ⓘ	589	696	748	632	553	601	789	712	820	1,285	-
Debt/CF from Ops. ⓘ	0	0	0.3	0.4	0.6	0.8	0	0.6	0.4	0.1	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	7%	9.6%	27.3%	15.8%
Adj EPS ⓘ	10.5%	18.7%	38.7%	40.3%
BVPSⓘ	8.8%	9.1%	12.4%	14.8%
Share Price	13.9%	42.5%	53.2%	75.9%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	30.1	21.2	19.4	16.8	17	16.1	13.9	17	22	27.2	28.7
Op. Profit Mgn % ⓘ	16.6	16.3	15.7	14.4	15.2	11.4	13.8	14.2	16	19.7	21.4
Net Profit Mgn % ⓘ	13.7	13	12.6	13.1	12.5	13.5	14.5	13.5	15.4	18.7	20.5
Debt to Equity ⓘ	0	0	0.1	0.1	0.1	0.1	0	0.1	0.1	0	0
Working Cap Days ⓘ	199	234	149	165	165	176	184	135	122	124	116
Cash Conv. Cycle ⓘ	46	58	51	60	60	64	69	46	41	44	77

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 28.70%

Sales growth is growing at healthy rate in last 3 years 27.33%

Net Profit is growing at healthy rate in last 3 years 38.74%

Sales growth is good in last 4 quarters at 17.70%

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Latest Financials - Cummins India Ltd.

	Standalone	Consolidated
TTM EPS (₹)	68.1	70.3
TTM Sales (₹ Cr.)	9,481	9,521
BVPS (₹.) ⓘ	233.7	251.3
Reserves (₹ Cr.) ⓘ	6,421	6,912
P/BV ⓘ	14.12	13.12
PE ⓘ	48.46	46.90

From the Market
52 Week Low / High (₹)	1817.70 / 4169.50
All Time Low / High (₹)	13.57 / 4169.50
Market Cap (₹ Cr.)	91,436
Equity (₹ Cr.)	55.4
Face Value (₹)	2
Industry PE ⓘ	44.3

Management X-Ray of Cummins India:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Cummins India

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Dividend History

Analyst's Notes

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Key Ratios of Cummins India

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	4,916	4,720	5,106	5,112	5,697	5,191	4,360	6,171	7,772	9,000
Operating Expenses ⓘ	4,101	3,950	4,305	4,380	4,833	4,603	3,780	5,294	6,526	7,231
Manufacturing Costs	206	179	194	201	212	208	133	174	202	237
Material Costs	3,022	2,963	3,282	3,264	3,620	3,372	2,764	4,107	5,223	5,771
Employee Cost	422	421	445	511	562	578	510	615	649	801
Other Costs ⓘ	451	387	385	403	439	446	374	399	453	422
Operating Profit ⓘ	815	770	801	732	865	588	580	877	1,246	1,769
Operating Profit Margin (%)	16.6%	16.3%	15.7%	14.3%	15.2%	11.3%	13.3%	14.2%	16.0%	19.7%
Other Income ⓘ	208	120	144	162	240	259	276	254	309	379
Interest ⓘ	2	10	17	15	17	21	17	12	16	27
Depreciation ⓘ	86	81	85	94	111	121	127	136	142	159
Exceptional Items ⓘ	0	0	0	56	0	-20	0	132	-14	-2
Profit Before Tax ⓘ	935	799	843	927	1,069	807	825	1,207	1,591	2,205
Tax ⓘ	177	171	188	215	326	102	190	273	363	484
Profit After Tax	757	628	655	712	743	706	635	934	1,228	1,721
PAT Margin (%)	15.4%	13.3%	12.8%	13.9%	13.0%	13.6%	14.6%	15.1%	15.8%	19.1%
Adjusted EPS (₹)	27.9	26.0	26.6	25.7	26.8	25.5	22.9	33.7	44.3	62.1
Dividend Payout Ratio (%)	50%	54%	53%	58%	63%	55%	65%	55%	56%	61%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	3,089	3,609	3,871	4,119	4,283	4,402	4,651	5,145	5,758	6,612
Share Capital ⓘ	55	55	55	55	55	55	55	55	55	55
Reserves ⓘ	3,033	3,553	3,816	4,063	4,228	4,347	4,596	5,090	5,703	6,557
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	3	3	252	257	313	489	20	395	350	100
Long Term Debt	0	0	0	0	0	0	0	0	0	0
Short Term Debt	3	3	252	257	313	489	20	395	350	100
Trade Payables	653	556	609	760	825	697	731	1,000	1,150	1,409
Others Liabilities ⓘ	2,662	494	482	580	639	607	554	573	661	849
Total Liabilities ⓘ	6,407	4,662	5,214	5,715	6,060	6,196	5,956	7,112	7,919	8,971
Fixed Assets
Gross Block	1,973	1,996	2,005	2,125	2,178	2,100	2,043	2,154	2,176	2,355
Accumulated Depreciation	666	705	771	835	891	866	874	925	970	1,030
Net Fixed Assetsⓘ	1,307	1,291	1,234	1,290	1,287	1,233	1,169	1,230	1,207	1,325
CWIP ⓘ	171	519	463	39	159	80	128	61	41	97
Investmentsⓘ	536	489	862	709	468	1,038	599	892	1,457	1,642
Inventories	741	607	570	544	633	577	564	738	904	950
Trade Receivables	980	946	964	1,338	1,284	1,146	1,088	1,258	1,597	2,085
Cash Equivalents	91	90	129	471	738	465	965	1,427	1,386	1,513
Others Assetsⓘ	2,581	721	992	1,324	1,492	1,658	1,443	1,507	1,326	1,359
Total Assets ⓘ	6,407	4,662	5,214	5,715	6,060	6,196	5,956	7,112	7,919	8,971

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	589	696	748	632	553	601	789	712	820	1,285
PBT ⓘ	935	799	843	927	1,069	807	825	1,207	1,591	2,205
Adjustment ⓘ	-56	60	55	-72	-43	-58	-54	-175	-163	-234
Changes in Working Capital ⓘ	-78	6	37	-39	-235	13	101	-66	-256	-184
Tax Paid ⓘ	-210	-169	-187	-183	-237	-162	-84	-255	-352	-501
Cash Flow From Investing Activity ⓘ	-146	-212	-487	-134	16	-214	15	-586	69	-268
Capex	-339	-490	-232	-92	-274	-237	-76	70	-154	-282
Net Investments	152	140	-366	-152	67	-110	-46	-760	38	-297
Others ⓘ	41	138	111	110	223	133	137	103	186	311
Cash Flow From Financing Activityⓘ	-444	-471	-226	-470	-525	-412	-873	-82	-687	-1,134
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	0	0	0	0
Net Proceeds from Borrowing ⓘ	0	0	0	0	0	0	0	0	0	0
Interest Paid ⓘ	-2	-1	-9	-10	-13	-16	-12	-8	-13	-18
Dividend Paid ⓘ	-443	-467	-466	-464	-564	-568	-388	-444	-624	-859
Others ⓘ	0	-3	249	5	52	172	-473	369	-51	-257
Net Cash Flow ⓘ	-1	12	35	28	44	-25	-69	43	201	-117

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	33.12	18.76	17.52	17.82	17.68	16.25	14.03	19.06	22.53	27.82
ROCE (%)	40.67	24.14	22.24	22.16	24.2	17.47	17.6	23.88	27.6	34.82
Asset Turnover Ratio	1.22	0.92	1.11	0.95	0.97	0.85	0.72	0.94	1.06	1.08
PAT to CFO Conversion(x)	0.78	1.11	1.14	0.89	0.74	0.85	1.24	0.76	0.67	0.75
Working Capital Days
Receivable Days	58	69	64	81	84	85	94	69	65	73
Inventory Days	43	48	39	39	38	43	48	39	38	37
Payable Days	69	75	65	76	80	82	94	77	75	81

Cummins India Ltd Stock News

Cummins India Ltd FAQs

What is the share price of Cummins India?

Company share prices are keep on changing according to the market conditions. The closing price of Cummins India on 21-Nov-2024 14:31 is ₹3,292.3.

What is the market cap of Cummins India?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Nov-2024 14:31 the market cap of Cummins India stood at ₹91,435.8.

What is the P/E ratio of Cummins India?

The latest P/E ratio of Cummins India as of 21-Nov-2024 14:31 is 48.46.

What is the P/B ratio of Cummins India?

The latest P/B ratio of Cummins India as of 21-Nov-2024 14:31 is 14.12.

What is the 52-week high and low of Cummins India?

The 52-week high of Cummins India is ₹4,169.5 and the 52-week low is ₹1,817.7.

What is the TTM revenue of Cummins India?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Cummins India is ₹9,481 ( Cr.) .

About Cummins India Ltd

Cummins India Limited is the country’s leading manufacturer of diesel and natural gas engines. One of the seven legal entities of the Cummins Group in India, Cummins India Limited comprises three business units - Engine, Power Systems, and Distribution.

Business area of the company

The company is engaged in the business of manufacturing, trading and selling of engines and allied activities.

Business units

Engine: The Engine Business manufactures engines from 60 HP for low, medium and heavy-duty on-highway commercial vehicle markets and off-highway commercial equipment industry spanning construction and compressor.
Power Systems: The Power Systems Business designs and manufactures high horsepower engines from 700 HP to 4500 HP for marine, railways, defense and mining applications as well as power generation systems comprising of integrated generator sets in the range of 7.5 kVA to 3750 kVA including transfer switches, paralleling switchgear and controls for use in standby, prime and continuous rated systems.
Distribution: The Distribution Business provides products, packages, services and solutions for uptime of Cummins equipment.

Products and Services

Engines
Generators & Power Systems
Components
Electrified Power

Awards

2011

Won the BG Deshmukh Award from Mahratha Chamber of Commerce, Industries and Agriculture (MCCIA), Pune for its efforts towards Corporate Social Responsibility in 2011 and 2013
Ranjangaon plant of Cummins Generator Technologies India received a Gold Rating from Indian Green Building Council (IGBC)
Confederation of Indian Industry (CII) presented Cummins India with the 11th National Award for ‘Excellence in Energy Management 2010’ for the rural electrification project

2012

Cummins India named Best Employer for Women in Corporate India by the WILL Forum
Cummins received the Engineering Export Promotion Council’s National Award in the category of ‘Engines, Turbines and Parts: Large Enterprise’ for the 24th successive year

2013

Tata Cummins - Jamshedpur named a Silver award winner for the automotive sector at the 14th Annual Greentech Awards

2014

Cummins India ranked 29th on the list of ‘Best Companies for CSR in India’ by the Economic Times
The ‘Water Neutrality’ and ‘Model Village’ programs by Cummins were presented the ‘Best Project Award’ under Lakshya’s Corporate Social Responsibility initiative - Sparsha

2015

Cummins India ranked 16th on the list of ‘Best Companies for CSR in India’ by the Economic Times
The ‘Water Neutrality’ and ‘Model Village’ programs by Cummins were presented the ‘Best Project Award’ under Lakshya’s Corporate Social Responsibility initiative - Sparsha

2016

Three Six Sigma projects won accolades at the Lean and Six Sigma Excellence Awards (LSSEA)
CII National Award for the categories of ‘Safety’ and ‘Energy and Cost’ to Cummins India Power Systems Exports Plant
Frost & Sullivan India Manufacturing Excellence Award (IMEA) for 'Reduction of testing KWh per engine by 20% with respect to 2015'

2017

Cummins India wins ‘Significant Achievement in Corporate Responsibility’ award at the CII-ITC Sustainability Awards.

2018

Cummins India wins ‘Significant Achievement in Corporate Responsibility’ award at the CII-ITC Sustainability Awards.
Cummins India wins Golden Peacock for Business Excellence 2019

2019

Global Analytics Center (GAC) India center wins the NASSCOM Global Capability Center Award 2019 at GCC Conclave
TATA Cummins Jamshedpur wins Kaizen National Award in the category of 'Innovations’
Cummins India wins ‘Excellence in Quality’ and ‘Excellence in Human Resources’ awards by Manufacturing Today
Cummins India wins Golden Peacock for Business Excellence 2019

Milestones

1962: Erstwhile Cummins Engine Company Inc. (CECO), U.S.A and Kirloskar Oil Engines Limited (KOEL) established a joint venture with 50% ownership by CECO, 25.50% by KOEL and 24.50% floated on the Bombay Stock Exchange
1987: Formed a 50:50 joint venture named Fleetguard Filters Private Limited between Cummins Filtration Inc. and Perfect Sealing Systems Private Limited
1989: Formed a 51:49 joint venture between Newage (now Cummins Generator Technologies) and Crompton Greaves to design and manufacture alternators for generators
1991: Cummins Diesel India Foundation collaborates with Maharshi Karve Stree Shikshan Samstha (MKSSS) to set up the first all women engineering college in India. The College is named Cummins College of Engineering for Women (CCEW).
1993: Formed Tata Cummins as a 50:50 joint venture between Cummins Engine Company Inc. and Tata Engineering and Locomotive Company (TELCO) to serve the medium and heavy commercial vehicle market.
1995: Tata Group and Holset (now Cummins Turbo Technologies) form Tata Holset, a 50:50 joint venture to design and manufacture turbochargers
1997: Cummins Inc. increases its stake in Kirloskar Cummins to 51%, Kirloskar Oil Engines largely divests its stake and Cummins India Ltd. is incorporated with the other 49% ownership floated on the Bombay Stock Exchange.
1998: Valvoline Cummins, a 50:50 joint venture between Ashland Inc. and Cummins India Limited is formed to manufacture lubricants
2003: Cummins Research and Technologies Incorporated is formed as a 50:50 joint venture between Cummins Inc. and Cummins India Ltd. to provide Analysis Led Design engineering services to all of Cummins globally
2011: Cummins Megasite is inaugurated. Three plants become operational - the second plant of Tata Cummins Limited, High Horsepower Rebuild Center and ReCon India. The fourth plant on the Megasite, India Parts Distribution Center becomes operational later in the year.
2011: Cummins SVAM Sales and Service Ltd., a 50:50 joint venture dealership between Cummins India Ltd. and SVAM is incorporated.
2014: Cummins India Office Campus, the first integrated ten acre office campus is inaugurated to accommodate office employees across all the group entities in India.
2014: Eighth project at the Megasite and the third facility of Tata Cummins Ltd., commences operations.
2018: Inaugurated Cummins Technical Center India (CTCI)
2018: Established Power Systems Plant at Pirangut
2019: Cummins Launches New Ignition Protected Marine Generator
2020: Cummins expands range of ignition-protected marine generators