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Cummins IndiaNSE:CUMMINSIND +1.62%93 Return-on-Tangible-Asset is 21.81% as of Jun. 2026, which is 49% above its 10-year median of 14.66. GuruFocus rates NSE:CUMMINSIND with a GF Score™ of 93/100 and a GF Value™ of ₹4,668.02 (Modestly Overvalued). Among 3,084 Industrial Products companies, Cummins India ranks better than 97.89% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Cummins India's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹24,372 Mil. Cummins India's average total tangible assets for the quarter that ended in Jun. 2026 was ₹111,750 Mil. Therefore, Cummins India's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 21.81%.
The historical rank and industry rank for Cummins India's Return-on-Tangible-Asset or its related term are showing as below:
NSE:CUMMINSIND'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 10.5 Med: 14.66 Max: 22.47
Current: 22.47
During the past 13 years, Cummins India's highest Return-on-Tangible-Asset was 22.47%. The lowest was 10.50%. And the median was 14.66%.
NSE:CUMMINSIND's Return-on-Tangible-Asset is ranked better than 97.89% of 3084
companies
in the Industrial Products industry
Industry Median: 3.41
vs NSE:CUMMINSIND: 22.47
Cummins India (NSE:CUMMINSIND) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Cummins India Return-on-Tangible-Asset Related Terms
Cummins India Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Cummins India's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:CUMMINSIND vs GEV, ETN, PH: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Cummins India's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cummins India Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins India's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Cummins India's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 21.81% mean?
Cummins India (NSE:CUMMINSIND) has a Return-on-Tangible-Asset of 21.81% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cummins India and its competitors. This is 49% above median its historical median of 14.66. Over the past decade, Cummins India's Return-on-Tangible-Asset has ranged from 10.50 to 22.47. According to the industry distribution chart, Cummins India ranks #65 out of 3084 companies in the Industrial Products industry, placing it in the top 2.1%.
Is Cummins India's Return-on-Tangible-Asset too high?
Cummins India's current Return-on-Tangible-Asset of 21.81% is 49% above median its 10-year median of 14.66. Over the past 10 years, this metric has ranged from a low of 10.50 to a high of 22.47. The Industrial Products industry median Return-on-Tangible-Asset is 3.41. Cummins India's value of 21.81% is 539.6% above this industry median. Based on the distribution chart, Cummins India ranks #65 out of 3084 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Cummins India has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins India's Return-on-Tangible-Asset compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Cummins India ranks #65 out of 3084 companies for Return-on-Tangible-Asset. This places Cummins India in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.41. Cummins India's value of 21.81% is 539.6% above this benchmark. Historically, Cummins India's own Return-on-Tangible-Asset has ranged from 10.50 to 22.47 over the past decade. While the company's 10-year median is 14.66 vs. the industry median of 3.41, Cummins India has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.41, based on 3,084 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins India's current Return-on-Tangible-Asset of 21.81% is 539.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cummins India and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins India's current Return-on-Tangible-Asset is 21.81%, which is 49% above median its own 10-year median of 14.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cummins India stock overvalued right now?
Based on GuruFocus' analysis, Cummins India (NSE:CUMMINSIND) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹4,668.02, compared to a current price of ₹5,239.50 — trading 12.2% above its estimated fair value. The current Return-on-Tangible-Asset is 21.81%, which is 49% above median its 10-year median of 14.66 and 539.6% above the Industrial Products industry median of 3.41. Cummins India's overall GF Score™ is 93/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Cummins India (NSE:CUMMINSIND), the current Return-on-Tangible-Asset is 21.81% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cummins India (NSE:CUMMINSIND) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins India stock appears to be overvalued.
The current stock price of ₹5,239.50 is trading 12.2% above its estimated GF Value™ of ₹4,668.02.
GuruFocus considers Cummins India to be Modestly Overvalued.
Key valuation signals for NSE:CUMMINSIND:
Return-on-Tangible-Asset: 21.81% (49% above median its 10-year median of 14.66)
GF Value™: ₹4,668.02 vs. price of ₹5,239.50 (12.2% above fair value)
Industry Position: 539.6% above the Industrial Products median (#65 of 3084)
No single metric tells the full story. See the NSE:CUMMINSIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cummins India Ltd designs and manufactures service engines and engages in allied activities. The company produces fuel systems, air handling, filtration, emission solutions, and electrical power generation systems in facilities across India. The company's business units are; Engines, Power Systems, Components, and Distribution. Its operating segments are; Engines and Lubes. Maximum revenue is generated from its Engines segment which manufactures engines from 60 HP for low, medium, and heavy-duty on-highway commercial vehicle markets and off-highway commercial equipment industry spanning construction and compressor.
93GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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