Cummins India has delivered exceptional performance, gaining 69.55% from its 52-week low as of February 11, 2026. The stock is currently trading at ₹1,410.50 on NSE, reflecting strong investor confidence in the company's prospects. Notably, the company declared its last dividend of ₹20.00 per share on February 11, 2026, demonstrating its commitment to shareholder returns.
Motilal Oswal has issued a buy rating on Cummins India with an unchanged target price of ₹4,950 in its research report dated February 05, 2026. According to the broker's analysis, the stock is currently trading at 50.4x/44.9x/38.5x on FY26/27/28E EPS. The recommendation is based on 42x March 2028E earnings valuation, reflecting the broker's bullish outlook on the company's prospects.
Cummins India reported in-line performance in the third quarter of FY26, with margin outperformance exceeding expectations. As reported by Motilal Oswal, the company demonstrated strong operational efficiency during this period. The broker noted that demand momentum remains strong across power generation and distribution segments, while some softness was observed in industrial and export segments.
According to the research report, future growth drivers for Cummins India include demand sustainability in power generation across both non-HHP and HHP range segments. The company is positioned to benefit from strong growth outlook for data center market expansion. Additionally, the healthy growth in distribution segment is expected as CPCB 4+ products start contributing to revenue from July 2026.
As reported by Motilal Oswal, Cummins India stands far ahead of the competition in terms of overall product offering and distribution reach. However, the company faces challenges from higher commodity prices, which pose a significant operational burden. The company remains optimistic about passing on raw material pressure to end markets due to strong underlying demand conditions.
