Cummins India Stock Price Analysis and Quick Research Report. Is Cummins India an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Cummins India. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Cummins India has a PE ratio of 53.7422844144169 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Cummins India has ROA of 21.0535% which is a good sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Cummins India has a Current ratio of 3.1126.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Cummins India has a ROE of 28.9168%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Cummins India has a Debt to Equity ratio of 0 which means that the company has low proportion of debt in its capital.

• Sales growth: Cummins India has reported revenue growth of 15.4131% which is fair in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Cummins India for the current financial year is 19.9976787821344%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Cummins India is Rs 51.5 and the yield is 1.2751%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Cummins India is Rs 74.8647. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Cummins India in Ticker for free. Also, one can get the intrinsic value of Cummins India by using Valuation Calculators, which are available with a Finology ONE subscription. 

Cummins India FAQs

Q1. What is Cummins India share price today?
Ans: The current share price of Cummins India is Rs 4023.4.

Q2. What is the market capitalisation of Cummins India?
Ans: Cummins India has a market capitalisation of Rs 111528.648 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Cummins India?
Ans: The PE ratio of Cummins India is 53.7422844144169 and the P/B ratio of Cummins India is 14.6607412503425, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Cummins India share?
Ans: The 52-week high share price of Cummins India is Rs 4095, and the 52-week low share price of Cummins India is Rs 2580.

Q5. Does Cummins India pay dividends?
Ans: Currently, Cummins India pays dividends. Dividend yield of Cummins India is around 1.2751%.

Q6. What are the face value and book value of Cummins India shares?
Ans: The face value of Cummins India shares is Rs 2, while the book value per share of Cummins India is around Rs 274.4336. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Cummins India?
Ans: Cummins India has a total debt of Rs 0 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Cummins India?
Ans: The ROE of Cummins India is 28.9168% and ROCE of Cummins India is 37.817%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Cummins India a good buy for the long term?
Ans: The Cummins India long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Cummins India undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Cummins India appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Cummins India’s financials?
Ans: You can review Cummins India’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.