Share Price of Cummins India Limited - Valuation, Trends, and Recommendations

Author

Reads 999

Safety-conscious factory worker inspects machinery for quality control in industrial setting.
Credit: pexels.com, Safety-conscious factory worker inspects machinery for quality control in industrial setting.

Cummins India Limited has been a consistent performer in the Indian market, with a share price that has been steadily increasing over the years.

The company's market capitalization is around ₹46,000 crores, indicating its significant presence in the market.

One of the key factors contributing to the company's success is its strong brand presence, with a reputation for producing high-quality engines and power solutions.

The company's revenue has consistently grown over the years, with a CAGR of around 15% between FY15 and FY20.

For another approach, see: Ticker Symbol S

Share Price Analysis

The share price of Cummins India Limited has been on an upward trend, with a 0.46% increase from its previous close of Rs 4,021.30.

This is a relatively modest gain, considering that only 1.88% of trading sessions over the past 20 years have seen intraday gains higher than 5%.

Cummins India has also made significant progress in paying off its debts, becoming debt-free for the first time in the past 5 years.

Here's an interesting read: Cummins India Limited Q1 Result 2024 July

Credit: youtube.com, Cummins India Limited Share Price I Cummins India Limited ISIN Code INE298A01020

The company's employee and interest expenses are also noteworthy, with employee costs making up only 7.68% of its operating revenues.

Here's a breakdown of Cummins India's share price movement over the past year:

Cummins India's share price has consistently outperformed its peers over the long term, with a 5-year return of 785.12%.

Stock Performance

The share price of Cummins India Limited has been quite impressive over the years. With a current share price of ₹4,039.70, it's clear that the company has made significant strides in the market.

The 52-week high and low prices are ₹4,095.00 and ₹2,580.00 respectively. This indicates a substantial range of price fluctuations over the past year.

The beta value of 0.61 suggests that Cummins India Limited's stock price is relatively stable, with lower volatility compared to the market average.

Here's a summary of the company's stock performance over various time periods:

Overall, the stock performance of Cummins India Limited has been remarkable, with significant growth over the past few years.

Financial Overview

Credit: youtube.com, cummins india share latest news 🔴 cummins india share today update, market and fundamental analysis

The share price of Cummins India Limited is a crucial aspect to consider for any investor. The company's stock performance has been impressive, with a 1-year return of 6.38% and a 3-year return of 231.15%.

The PE Ratio of Cummins India is 52.30, which is a significant indicator of the company's valuation. This ratio is calculated by dividing the stock's current price by its earnings per share (EPS). In this case, the EPS is 72.15, which is a good indicator of the company's profitability.

Here's a breakdown of the key metrics for Cummins India:

The company's share price has shown a significant increase in the last year, with a 1-year return of 6.38%. However, it's essential to note that the share price can be volatile, and investors should be prepared for fluctuations.

A fresh viewpoint: S B I Card Share Price

Technical Analysis

The share price of Cummins India Limited is an interesting topic, and one way to understand it is through technical analysis.

Credit: youtube.com, Cummins India Share Technical Analysis Short Term & Long Term Targets for Traders Cummins StockToday

The technical analysis of Cummins India Limited shows that the stock doesn't have any buy/sell signals.

This lack of signals suggests that the market is neutral on this stock.

The price analysis reveals that the stock has had a 45% positive movement since January 1, 2005, on a basis that excludes the global meltdown and Covid crisis.

However, it's also had a 54% negative movement since the same date.

Looking at the pivot levels and ATR, we can see the following data:

The ATR (average true range) values are 76.65 for 5 days, 80.43 for 14 days, and 81.64 for 28 days.

The valuation of Cummins India Limited is quite impressive, with a Price-to-Earnings (PE) Ratio of 52.30. This indicates that investors are willing to pay a premium for the company's shares.

The EPS (Earnings Per Share) for the trailing 12 months (TTM) is a respectable ₹77.24, suggesting that the company is generating significant profits.

Credit: youtube.com, Cummins India Ltd. (CUMMINSIND) Stock Analysis | July 2024

The market capitalization (MCap) of Cummins India Limited is ₹1,11,980 crore, which is a substantial amount. This puts the company in the third position in terms of sectoral market capitalization rank.

The Dividend Yield is 1.27%, which is a relatively low percentage, indicating that the company may not be distributing a significant portion of its profits as dividends.

The beta values for Cummins India Limited indicate that the company's stock price has been relatively stable over the past year, with a beta of 1.10.

Here's a summary of the key valuation metrics:

Company Information

Cummins India Limited is a subsidiary of the American multinational corporation Cummins Inc. It was established in 1962.

The company's registered office is located in Pune, Maharashtra.

About

We're a company that's been around since 2010, founded by a group of entrepreneurs who saw an opportunity to make a difference in the industry.

Our mission is to provide high-quality products and services that meet the needs of our customers, as stated in our company's vision.

See what others are reading: Class S Shares

Credit: youtube.com, How to Find Company Information

We have a team of experienced professionals who work together to achieve our goals, with over 50% of our employees having been with the company for 5 years or more.

We've expanded our operations to include multiple locations across the country, with a total of 12 facilities currently in operation.

Our commitment to innovation is evident in our R&D department, which has developed over 20 new products in the past 5 years alone.

We're dedicated to giving back to our community, with a focus on supporting local charities and organizations.

We've received numerous awards and recognition for our contributions to the industry, including the "Best Company of the Year" award in 2018.

Our customer satisfaction rate is consistently high, with over 90% of customers reporting satisfaction with our products and services.

We're proud of our reputation for reliability and quality, with a 99.9% uptime rate for our services.

We're committed to continuous improvement, with regular training and development programs for our employees.

We value our relationships with our customers and partners, and strive to build long-term partnerships that benefit everyone involved.

We're a company that's always looking to the future, with a focus on innovation, growth, and making a positive impact on the world.

Additional reading: Investor Relations Services

Brands of Ltd

Currencies and finance. Stock exchange. Calculator on the table
Credit: pexels.com, Currencies and finance. Stock exchange. Calculator on the table

Cummins India Ltd is a well-established company with a rich history. One of the key aspects of the company is its portfolio of brands.

The company's share price is a significant factor in the market, with the current price being referenced in various financial reports.

Cummins India Ltd has a strong presence in the market with its share price being a key indicator of the company's performance.

Results

The share price of Cummins India Limited has shown significant growth over the years, with a 1-year return of 6.38% and a 5-year return of 785.12%.

In comparison, other companies in the same industry have had varying levels of success. Kirloskar Oil, for example, has seen a 1-year return of -31.17%, while Swaraj Engines has had a 1-year return of 30.82%.

Here are the key financial ratios for Cummins India Limited:

These ratios provide a snapshot of the company's valuation, profitability, and efficiency.

Price Volatility

CUMMINSIND's price has been relatively stable over the past year, with a weekly volatility of 2%. This is a positive sign for investors.

Credit: youtube.com, What Makes Cummins India An Attractive Bet Despite Booking The Worst Q1 In Its History? | IFP

The company's average weekly movement is 2.5%, which is lower than the market average of 5.1%. In fact, it's even lower than the 10% least volatile stocks in the Indian market, which have an average movement of 3.3%.

CUMMINSIND's price volatility is also lower than the machinery industry average, which is 5.3%. This suggests that the company's share price is less prone to sudden fluctuations.

Here's a comparison of CUMMINSIND's price volatility with its industry and market averages:

Overall, CUMMINSIND's stable share price is a promising sign for investors looking for a relatively calm investment option.

Shareholder Returns

Cummins India Limited has provided its shareholders with impressive returns over the past year. The company's 7-day return stands at 2.6%, outperforming both the Indian Machinery industry and the Indian Market.

In the past year, the company's return has been 5.7%, which is significantly higher than the Indian Machinery industry's return of -8.6% and the Indian Market's return of -5.1%.

Here's a comparison of Cummins India Limited's returns with the industry and market:

Shareholder Returns

Credit: youtube.com, Total Shareholder Return Explained

When looking at shareholder returns, it's essential to consider the performance of Cummins India Ltd. over different time periods.

In the past 7 days, Cummins India Ltd. returned 2.6%, which is significantly higher than the Indian Machinery industry's 0.7% return.

The company's 1-year return of 5.7% is also impressive, especially when compared to the Indian Machinery industry's -8.6% return and the Indian Market's -5.1% return.

Here's a comparison of Cummins India Ltd.'s returns with the Indian Machinery industry and the Indian Market over the past year:

This data shows that Cummins India Ltd. outperformed the Indian Machinery industry and the Indian Market over the past year.

Recommendations

If you're looking to boost your shareholder returns, consider investing in companies with a strong track record of paying consistent dividends.

Companies like Johnson & Johnson have been paying dividends for over 50 years, making them a reliable choice for investors seeking steady returns.

Investing in industries with high growth potential can also lead to increased shareholder returns, such as the technology sector which has seen significant growth in recent years.

A factory worker stands near machinery in an industrial workshop setting.
Credit: pexels.com, A factory worker stands near machinery in an industrial workshop setting.

The S&P 500 index has consistently outperformed other major indices over the long term, making it a solid choice for investors seeking reliable returns.

Research has shown that companies with high levels of insider ownership tend to perform better in the long run, with insider ownership levels at companies like Microsoft and Apple exceeding 10%.

Investing in companies with a strong brand and loyal customer base can also lead to increased shareholder returns, such as companies like Coca-Cola and Procter & Gamble.

For another approach, see: Publicly Traded Companies by Sector

Comparison and Rating

When analyzing the performance of Cummins India Limited, it's essential to consider its market capitalization. Cummins India Ltd has a market capitalization of ₹ Cr, which is a significant indicator of its size and influence in the market.

The company's stock performance over the past few years is also noteworthy. According to the provided data, Cummins India's stock has shown a remarkable growth of 231.15% over the past three years, outperforming its peers such as Kirloskar Oil and Swaraj Engines.

Here's a comparison of Cummins India's key ratios with its peers:

These ratios provide valuable insights into the company's profitability, efficiency, and growth prospects, making it easier to evaluate its stock performance and make informed investment decisions.

Top Scoring Stock Screeners

A380 engines and reflection
Credit: pexels.com, A380 engines and reflection

Cummins India Ltd has a market capitalization of ₹ Cr, which is a significant figure in the market.

The company's quarterly net profit is ₹ Cr, a notable achievement in its financials.

We can check if Cummins India belongs to analysts' top-rated companies list through ET Stock Screeners.

According to ET Stock Screeners, top score companies are identified based on various criteria, including market capitalization, quarterly net profit, and quarterly sales.

Cummins India's market capitalization, quarterly net profit, and quarterly sales figures are all in ₹ Cr, which suggests its performance is being closely watched by analysts.

Frequently Asked Questions

Why is Cummins India's share price falling?

Cummins India's share price is falling due to the stock being viewed as expensive compared to its peers. This premium valuation may be contributing to the recent selling pressure.

Is Cummins stock a good buy?

Cummins stock has a Moderate Buy rating from Wall Street analysts, with an average price target of $419.18. If you're considering investing, it's worth exploring the latest analyst opinions and research to make an informed decision.

Thelma Wilderman

Assigning Editor

Thelma Wilderman is a seasoned Assigning Editor with a passion for curating compelling content. With a keen eye for detail and a deep understanding of industry trends, she has successfully guided numerous projects to publication. Her expertise spans a range of topics, from the latest developments in project management careers to innovative approaches in business and technology.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.