Cummins India Ltd. (NSE: CUMMINSIND) is a leading manufacturer of engines, power generation equipment, and related components for a variety of applications in India and around the world.
As of July 8 2023, the Cummins India’s share price has been fluctuating as a result of various market and industry situations and is currently trading at Rs.1902 with a market cap of ₹52,733 Crore.
Many experts and investors are optimistic about the Cummins India’s future prospects given its recent triumphs in meeting the Bharat Stage-VI OBD II emission standard.
The current state of Cummins India’s stock and a few probable factors that could have an impact on its share price goal between 2023 and 2030 will be examined in this article.
We will also address the question of whether or not Cummins India is a good stock to buy, given its historical performance, current market conditions, and long-term growth potential.
About Cummins India
Stock History of Cummins India
The history of Cummins India is extensive and dates back many years. The business, which was started with the intention of fostering sustainable growth in India, has developed into a significant force in the nation’s manufacturing industry.
Cummins India has demonstrated incredible resiliency over the years despite dealing with severe economic difficulties by persistently investing in cutting-edge technologies and creative solutions. Because of this, the business has become a leader in its field and has continued to grow by forming strategic alliances and working together with other businesses all throughout India.
Cummins India has developed a solid reputation as a dependable partner and a significant development driver in the rapidly changing business environment in India thanks to its constant dedication to quality, innovation, and sustainability.
The company is well-positioned to take advantage of the numerous opportunities given by India’s rapidly evolving economy because it places a strong emphasis on satisfying the demands of its clients and striving for excellence in all facets of its business operations.
Latest news about Cummins India
- Cummins India Ltd has introduced power solutions that comply with CPCBIV+ standards.
- Cummins India Limited has launched a range of engines designed for diesel generating set applications.
- Cummins, a manufacturer of engines, plans to invest $1 billion in India.
Below are the trading platforms that you can use to purchase Cummins India shares:
|When||Maximum Price||Minimum Price|
The forecast of Cummins India’s share prices for the year 2023 can be clearly seen.
It shows the maximum and minimum prices for each month, giving investors an idea of the potential range of fluctuations. The data shows that there is an uptrend in the stock price with a bullish outlook for the year 2023.
The maximum price for Cummins India’s stock is predicted to be ₹3,014.41 in December 2023, while the minimum price is expected to be ₹1,188.21 in May 2023. This indicates that the stock may experience significant growth of approximately 132% from its lowest value to its highest value in the year.
Investors who are bullish on Cummins India may consider investing in the stock during periods of low prices and hold it for long-term gains as the company is expected to perform well in the future.
Cummins India’s stock has the potential to generate significant returns for investors in 2023 (however this is not a financial advise).
|When||Maximum Price||Minimum Price|
We can say that there is a bearish outlook for Cummins India share price in 2024, with the maximum price expected to be ₹4,220.31 in December 2024, and the minimum price anticipated to be ₹2,187.00 in May 2024. This indicates that the stock may experience significant fluctuations throughout the year.
Despite the bearish outlook, the data suggests that the stock has the potential to generate a decent return for investors who invest in the stock at the right time. Investors who are bullish on the company may consider investing in the stock during periods of low prices and hold it for long-term gains.
Cummins India’s stock has the potential to generate returns for investors in 2024, but caution is advised due to the expected fluctuations in the share price.
|When||Maximum Price||Minimum Price|
The Cummins India share price shows a positive outlook with the maximum price expected to be ₹5,119.30 in December 2025, and the minimum price anticipated to be ₹2,970.68 in May 2025.
The average target price for the year is around ₹4,396.82, indicating a potential upside of 29.7% from the current price. This suggests that the stock is expected to perform well in 2025, and investors may consider investing in the stock based on this data.
It is important to note that the stock market is subject to fluctuations and can be unpredictable. Therefore, investors should do their own research and seek professional advice before making investment decisions.
Based on the data provided in the table, Cummins India’s stock appears to be a good target for investors in 2025, but it is recommended to exercise caution and invest wisely.
|Year||Maximum Price||Minimum Price|
Analyzing the price targets, Cummins India’s share price is expected to experience fluctuations in the coming years. In 2026, the maximum price is projected to be ₹3,583.51, while the minimum price is predicted to be ₹2,508.46.
In 2027, the maximum price is expected to be ₹3,045.99, while the minimum price is projected to be ₹2,132.19. However, the share price is predicted to rise significantly in 2028, with a maximum target of ₹5,482.78 and a minimum target of ₹3,837.94.
Similarly, in 2029 and 2030, the share price is expected to rise significantly, with a maximum target of ₹11,262.47 and ₹12,542.30, respectively, and a minimum target of ₹7,883.73 and ₹8,779.61, respectively.
It is important to note that these projections are subject to change based on various factors such as economic conditions, industry trends, and company performance. Therefore, it is recommended to use these projections as a reference and not as a sole basis for investment decisions.
Financial Condition of Cummins India: Last 5 years
(in INR Crore)
|March 2019||March 2020||March 2021||March 2022||March 2023|
|Profit before Tax||1,030||759||808||1,159||1,492|
|EPS (in Rs)||26.07||22.70||22.29||31.99||40.76|
|Dividend Payout %||65%||62%||67%||58%||61%|
- Cummins India experienced a steady growth in sales during this period, with an upward trend from 4,329 crore in March 2019 to 7,744 crore in March 2023. This indicates positive business performance and increased market demand for their products and services.
- The company demonstrated effective expense management, as evidenced by the controlled increase in expenses from 4,795 crore in March 2019 to 6,502 crore in March 2023. This indicates efficient cost control measures and the ability to maintain profitability.
- Cummins India consistently improved its operating profit, reaching 1,243 crore in March 2023. This reflects the company’s ability to generate profits from its core operations and signifies positive operational efficiency.
- The company maintained a relatively stable operating profit margin (OPM %) in the range of 11% to 16% during this period. This suggests consistent operational performance and the ability to manage costs effectively.
- Cummins India displayed a consistent track record of profitability, with net profit increasing from 723 crore in March 2019 to 1,130 crore in March 2023. This highlights the company’s ability to generate sustainable profits and deliver value to its stakeholders.
- Cummins India’s promoters have consistently held a majority stake of 51% in the company throughout this period, remained unchanged in last 5 years.
- Foreign Institutional Investors (FIIs) initially had a shareholding of 9.14% in March 2019, which decreased to 7.46% in March 2020, but then increased to 13.99% in March 2023. Increase in FIIs investments over the last 5 years is a positive sign.
- Domestic Institutional Investors (DIIs) saw a decrease in their shareholding from 26.91% in March 2019 to 23.61% in March 2023.
- The government’s shareholding remained relatively low, ranging from 0.27% to 1.26% during this period.
- The public’s shareholding in Cummins India showed some fluctuations, starting from 12.68% in March 2019, reaching a peak of 13.17% in March 2020, and then gradually declining to 11.20% in March 2023. This is a good sign.
By the end of 2023, it is expected that the per share price of Cummins India will rise to ₹3,014.41.
The share price target of Cummins India for 2025 might be around ₹5,119.30.
What are the key financial highlights of Cummins India in the last five years?
Cummins India’s revenue growth has been volatile, but the company has managed to increase its profits steadily over the years. The company’s profit after tax (PAT) has increased by around 11% CAGR over the last five years.
By the end of 2030, the share price of Cummins India is expected to reach approximately ₹12,542.30 per share.
According to our analysis, Cummin India shares could at max reach Rs.25000 by 2040.
According to our analysis, Cummin India shares could at max reach Rs.59000 by 2050.
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Cummins India has demonstrated continuous revenue growth over the past five years, with revenue increasing at an average rate of 9% per year. Despite a decline in 2021, the business recovered strongly in 2022, growing its revenue by 41%. Over the last 3 years, PAT is growing at an average rate of 22% CAGR, which is consistent with the profit and loss statement’s positive trend.
Also, the firm’s dividend payout ratio has continually been strong, demonstrating a dedication to shareholders. With a possible upside of 169%, analysts forecast a maximum target price of ₹3,583.51 by December 2025.
For long-term investors, Cummins India shares represent a solid investment opportunity based on the company’s financial performance and growth prospects.
What did we learn?
- 1 About Cummins India
- 2 Stock History of Cummins India
- 3 Latest news about Cummins India
- 4 How to purchase Cummins India shares?
- 5 Cummins India Share Price Prediction: 2023 to 2030
- 6 Financial Condition of Cummins India: Last 5 years
- 7 Cummins India share holding pattern
- 8 FAQS
- 8.1 Can we expect an increase in the share price of Cummins India in 2023??
- 8.2 What is the share price target for Cummins India in 2025?
- 8.3 What are the key financial highlights of Cummins India in the last five years?
- 8.4 What is the share price target of Cummins India by 2030?
- 8.5 What is Cummins India’s share price target of 2040?
- 8.6 What is Cummins India’s share price target of 2050?
- 9 Conclusion