Cummins India Limited (CUMMINSIND.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+6.8%

₹4,941.47

vs ₹4,628.00 price

Levered DCF

₹4,797.75

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

30.44

Safe zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	52.82×	41.71×	48.39×	36.78×	33.29×	40.14×	12.84×	27.96×
P/B	14.72×	11.03×	12.59×	7.84×	6.04×	5.48×	2.06×	4.85×
P/S	10.27×	8.03×	9.25×	5.81×	5.04×	5.85×	1.74×	3.64×
EV / EBITDA	37.13×	35.14×	42.12×	31.62×	30.06×	32.87×	12.35×	20.72×
Gross margin	28.7%	36.0%	35.3%	32.2%	32.8%	35.9%	34.2%	35.7%
Operating margin	19.7%	28.3%	26.4%	23.6%	22.1%	22.8%	22.2%	25.1%
Net margin	19.4%	19.2%	19.1%	15.8%	15.1%	14.6%	13.6%	13.0%
Current ratio	3.32×	3.1×	2.89×	2.7×	2.53×	2.94×	2.16×	2.23×
Debt / equity	0×	0×	0.02×	0.07×	0.08×	0.01×	0.12×	0.07×
Interest coverage	193.1×	502.42×	86.63×	113.04×	112.21×	59.44×	54.88×	85.34×
Dividend yield	1.2%	1.3%	1.0%	1.4%	1.4%	1.5%	6.3%	2.7%
Payout ratio	62.8%	52.7%	49.9%	50.8%	47.5%	61.1%	80.4%	76.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	27.9%	26.4%	26.0%	21.3%	18.1%	13.7%	16.0%	17.3%
Return on invested capital	20.7%	28.7%	26.4%	22.2%	18.3%	15.7%	19.7%	20.5%
Return on assets	20.9%	19.7%	19.2%	15.5%	13.1%	10.7%	11.4%	12.3%
Free cash flow yield	1.5%	2.1%	1.2%	1.5%	1.8%	2.6%	3.8%	1.3%
Earnings yield	1.9%	2.4%	2.1%	2.7%	3.0%	2.5%	7.8%	3.6%
Enterprise value	₹1.2T	₹809.4B	₹830.8B	₹451.5B	₹313.2B	₹254.1B	₹93.9B	₹208.8B
Net debt / EBITDA	-0.71×	-1.08×	-0.09×	-0.01×	0.23×	-0.11×	0.43×	0.12×
Cash conversion cycle (days)	62	49	56	58	53	72	69	66