Cummins India Ltd designs, manufactures and sells diesel and alternative fuel engines, generators, and related accessories. It also provides after-sale services.
The company has a strong domestic presence. Being a part of Cummins USA, it also has a global presence and exports to the USA, UK, Mexico, China, and Singapore.
Cummins India’s leadership team enjoys the patronage of the century old Cummins Inc. The management has been efficient in deploying capital by funding capex through robust cash flows and keeping debt negligible.
As the demand for heavy equipment increases, a precursor for pickup in business activity, capital goods makers could be the first to benefit. Cummins is a world leader in power capital goods equipment.
What is also comforting is that Cummins like its MNC peers, has sufficient cash and very low debt on its books.
Therefore, as the cycle of infrastructure activity in India takes an upward turn, Cummins could be amongst the few capital goods companies, powering it with its R&D capabilities.

Financials at a Glance
(Rs m, Consolidated) FY19 FY20 FY21 FY22 FY23
Net sales 56,973 51,915 43,601 61,709 77,721
Sales growth (%) 11.5% -8.9% -16.0% 41.5% 25.9%
Operating profit            11,041                 8,467                 8,558            11,313            15,559
Operating profit margin (%) 19.4% 16.3% 19.6% 18.3% 20.0%
Net profit               7,426                 7,056                 6,350               9,337            12,282
Net profit margin (%) 13.0% 13.6% 14.6% 15.1% 15.8%
 
Balance Sheet
Fixed assets            21,737               23,500               23,161            22,695            22,671
Investments 4,682 10,375 5,991 8,918 14,574
Other fixed assets               2,326                 2,077                 1,121               1,149               1,436
Current assets 31,859 26,009 29,289 38,358 40,506
Total Assets            60,603               61,961               59,562            71,120            79,186
   
Net worth 42,830 44,020 46,514 51,450 57,582
Minority Interest  –   –   –   –   – 
Non Current Liabilities               2,432                 2,265                 1,962               2,224               2,701
Current liabilities 15,341 15,676 11,087 17,446 18,904
Total liabilities 60,603 61,961 59,562 71,120 79,186
Valuations*
(Rs m) FY19 FY20 FY21 FY22 FY23
Net sales (Rs m) 56,973 51,915 43,601 61,709 77,721
PAT (Rs m) 7,426 7,056 6,350 9,337 12,282
Adj. EPS (Rs) 26.8 25.5 22.9 33.7 44.3
Price to earnings (x) 72.7 76.5 85.0 57.8 43.9
Price to sales (x) 9.5 10.4 12.4 8.7 6.9
Price to book value (x) 12.6 12.3 11.6 10.5 9.4
RoCE (%) 24.2 17.5 17.6 23.9 27.6
RoNW (%) 17.7 16.3 14.0 19.1 22.5

Shareholding (%, Sept 23)
Category (%)
Promoters 51.0
Institutions 38.6
Others 10.4
Total 100.0
Stock Price Performance
Stock Price Performance
(as on 15th Dec 2023)
  Cummins India Ltd. Index#
Over 1 Year 30.2% 12.5%
Over 3 Years 48.1% 15.1%
Over 5 Years 19.2% 14.4%

BSE Sensex

Returns over 1 yr are compounded annual averages

Market Data
Price on reco. date (Rs) 1,947.2
52 week H/L 2,019 / 1,353
BSE code 500480
NSE Symbol CUMMINSIND
No. of shares (m) 277.2
Face value (Rs) 2.0
FY23 dividend/share (Rs) (Adjusted) 25.0
Free float (%) 49
Market cap (Rs m) 539,764
Average 52-week liquidity (Rs m) 1,282.9
Price to sales* (times) 6.5
Price to earnings* (times) 37.3
Price to book^ (times) 9.4
Debt to Equity^ (times) 0.06
Dividend yield (FY23 at current prices) 1.3%
Promoter pledging (% of Total Equity) 0.0%
*Based on trailing 12-month consolidated numbers