capital_goods
Cummins India
CUMMINSIND · Nifty 50
₹5,833
Price 2026-06-17
At a Glance
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Cummins India scores 80/100 on fundamentals (strong). Cummins India: BROAD EXPANSION regime.
Fundamental Score: 80/100 · STRONG · 2 signals detected
DuPont Analysis
ROE 26.8% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 26.78% is strong efficiency-driven and stable. Net margin of 20.2% × asset turnover of 1.0x × leverage of 1.3x.
What This Means
Net margin of 20.2% means the company keeps ₹20.2 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 1.00x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
36.0%
Operating
26.4%
Net
20.2%
Gross margin 36.0% → operating margin 26.4% → net margin 20.2%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.8x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 195.9x — very comfortable. Debt service is not a concern.
Free Cash Flow
MODERATEFCF margin at 13.2% — strong cash generation. Business is self-funding.
Peer Comparison
Key Watchpoints
Breaks above ₹6125 (+5%)
Trend reversal confirmation
Breaks below ₹5541 (-5%)
Further downside risk
Capital_Goods sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Tight liquidity. Monitor cash position and access to credit lines.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
➡️ 3 flags — 1 positive, 2 warning. Mixed profile.
Data Quality
News Correlation
50 articles scanned for fundamental themes