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Cummins India Limited (500480) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Cummins India Limited

500480Market cap $14BPrice $50.3

Country🇮🇳India

SectorIndustrials

IndustryMachinery

Manufactures diesel and natural gas engines, power generators, and related components for trucks, construction, and industrial use across India. It's the local powerhouse behind its American parent, supplying engines that keep the country's trains, mines, and factories running.

In Bastion Portfolios?

52W Return+12%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+11%7

Revenue Forecast

Rev CAGR (1y)+13%7

Rev CAGR (3y)+18%9

Rev CAGR (5y)+15%9

Earnings Forecast

EPS Growth Y+1+10%7

EPS Growth Y+2+19%8

EPS Growth Y+3+19%8

Quality

Margins

EBIT Margin20%7

Net Income Margin19%8

Free Cash Flow Margin12%6

Debt

Net Debt/EBITDA-1.410

Efficiency

ROE30%9

ROAna–

Earnings Stability1010

GEAR+VERY STRONG88

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)481

P/E Ratio (Forward 3y)351

P/BV15.91

EV Multiples

EV/EBITDA Fwd451

EV/EBIT Fwd491

Yield

Free Cash Flow Yield1.1%3

Dividend Yieldna–

Momentum

Short term

1 month return-4%6

3 month return-11%3

YTD return+11%6

Mid term

Price vs 52wHigh80%5

1 year return+25%8

Long term

3 year return+196%9

5 year return+490%10

Risk Shield

Price Risk

Beta0.76

Volatility29%7

Free Cash Flow

Free Cash Flow Margin12%6

Free Cash Flow Yield1.1%3

Quality

ROCE58%10

Earnings Stability1010

Net Debt/EBITDA-1.410

02Growth

Is it actually growing, and how fast?

500480Cummins India

Revenue FY26$1.3B

GROWTH RATING↗

STRONG84 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+11%7

Revenue, next 1Y+13%7

Revenue, next 3Y, CAGR+18%9

Revenue, next 5Y, CAGR+15%9

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+10%7

EPS growth, FY28E+19%8

EPS growth, FY29E+19%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 84% of companies worldwide.

Revenue grew 11%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Revenue is set to grow 18%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 11%/yr over the last 3 years and is set to grow 18%/yr from here.

The runway holds up: revenue is set to grow 15%/yr over five years.9/10

Earnings are set to grow in step with sales (EPS about 19%/yr vs revenue 18%/yr).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up.

03Price Momentum

Is the market behind it right now?

500480Cummins India

Total return Current308%

Price return Current244%

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return-11%3

YTD return+11%6

MID & LONG-TERM▾SCORE

% of 52-week high80%5

1-year return+25%8

3-year return+196%9

5-year return+490%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +196% over three years and +490% over five, ahead of 90% of the market.

It's up 25% over the past year, but 20% below its 52-week high. That is clearly ahead of the market.

WATCH

Returns sit at the market level over the past month (-4%) and so far this year (+11%).

WEAKNESSES

The stock is underperforming over three months (-11%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over three months.

04Value

Are you paying a fair price for it?

Stop guessing on Cummins India Limited. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

500480Cummins India

Revenue FY26$1.3B

GROWTH RATING↗

STRONG84 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+11%7

Revenue, next 1Y+13%7

Revenue, next 3Y, CAGR+18%9

Revenue, next 5Y, CAGR+15%9

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+10%7

EPS growth, FY28E+19%8

EPS growth, FY29E+19%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 84% of companies worldwide.

Revenue grew 11%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Revenue is set to grow 18%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 11%/yr over the last 3 years and is set to grow 18%/yr from here.

The runway holds up: revenue is set to grow 15%/yr over five years.9/10

Earnings are set to grow in step with sales (EPS about 19%/yr vs revenue 18%/yr).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Hyper Compounder

A top-tier grower that's speeding up.

03Price Momentum

Is the market behind it right now?

500480Cummins India

Total return Current308%

Price return Current244%

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return-11%3

YTD return+11%6

MID & LONG-TERM▾SCORE

% of 52-week high80%5

1-year return+25%8

3-year return+196%9

5-year return+490%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +196% over three years and +490% over five, ahead of 90% of the market.

It's up 25% over the past year, but 20% below its 52-week high. That is clearly ahead of the market.

WATCH

Returns sit at the market level over the past month (-4%) and so far this year (+11%).

WEAKNESSES

The stock is underperforming over three months (-11%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming over three months.

04Value

Are you paying a fair price for it?

Stop guessing on Cummins India Limited. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community