CUMMINS INDIA LTD Fair Value
CUMMINSIND · Capital Goods · Current price ₹5,080
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹664 | 30% ROE fading to 12% over ~20 yrs, on ₹306 book |
| Relative P/E | ₹4,932 | EPS × 57.9 peer-median P/E |
| Graham floor | ₹766 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹5,878 | Street consensus 12-month target price |
Is CUMMINS INDIA LTD undervalued?
DocStoX estimates the fair value of CUMMINS INDIA LTD at ₹2,598 per share, versus the current market price of ₹5,080. That puts the stock about -48.9% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹664), Relative P/E (₹4,932), Graham floor (₹766), Analyst target (₹5,878). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹664 (bear) to ₹2,598 (base) to ₹5,878 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on CUMMINS INDIA LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.