Cummins India (BOM:500480) ROCE %: 38.54% (As of Mar. 2026)


BOM:500480 Cummins India Ltd BOM:500480
87 GF Score
Price ₹5,471.00
GF Value ₹4,356.35
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Cummins India ROCE %?

Cummins India BOM:500480 -1.92% 87 ROCE % is 38.54% as of Mar. 2026. GuruFocus rates BOM:500480 with a GF Score™ of 87/100 and a GF Value™ of ₹4,356.35 (Modestly Overvalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cummins India's annualized ROCE % for the quarter that ended in Mar. 2026 was 38.54%.

Cummins India  (BOM:500480) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cummins India ROCE % Related Terms

Cummins India ROCE % Historical Data

* Premium members only.

The historical data trend for Cummins India's ROCE % 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.

Cummins India ROCE % Chart

Cummins India Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.87 28.21 34.49 35.20 36.94

Cummins India Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.18 39.81 40.27 30.71 38.54
BOM:500480
87GF Score
Cummins India Ltd BOM:500480
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Cummins India ROCE % Calculation

Cummins India's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=30983.6/( ( (101684.9 - 22584.7) + (113042.1 - 24397) )/ 2 )
=30983.6/( (79100.2+88645.1)/ 2 )
=30983.6/83872.65
=36.94 %

Cummins India's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=34166.4/( ( (0 - 0) + (113042.1 - 24397) )/ 1 )
=34166.4/( ( 0 + 88645.1 )/ 1 )
=34166.4/88645.1
=38.54 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 38.54% mean?
Cummins India (BOM:500480) has a ROCE % of 38.54% as of Mar. 2026.
Is Cummins India's ROCE % too high?
Cummins India's current ROCE % is 38.54%. The Industrial Products industry median ROCE % is 7.05. Cummins India's value of 38.54% is 446.7% above this industry median. Overall, Cummins India has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins India's ROCE % compare to GEV and ETN?
Cummins India's ROCE % of 38.54% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.05. Cummins India's value of 38.54% is 446.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Industrial Products company?
The median ROCE % among Industrial Products companies is 7.05, based on 3,021 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins India's current ROCE % of 38.54% is 446.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median ROCE % is 7.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins India's current ROCE % is 38.54%. 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 (BOM:500480) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹4,356.35, compared to a current price of ₹5,471.00 — trading 25.6% above its estimated fair value. The current ROCE % is 38.54% and 446.7% above the Industrial Products industry median of 7.05. Cummins India's overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Cummins India (BOM:500480), the current ROCE % is 38.54% as of Mar. 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 (BOM:500480) Overvalued in 2026?

Based on GuruFocus' analysis, Cummins India stock appears to be overvalued. The current stock price of ₹5,471.00 is trading 25.6% above its estimated GF Value™ of ₹4,356.35. GuruFocus considers Cummins India to be Modestly Overvalued.

Key valuation signals for BOM:500480:

  • ROCE %: 38.54%
  • GF Value™: ₹4,356.35 vs. price of ₹5,471.00 (25.6% above fair value)
  • GF Score™: 87/100 with 5 warning signs
  • Industry Position: 446.7% above the Industrial Products median

No single metric tells the full story. See the BOM:500480 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cummins India Business Description

Other Exchanges CUMMINSIND:India
Address Cummins India Office Campus, Tower A, 5th Floor, Survey No. 21, Balewadi, Pune, MH, IND, 411045
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.
87GF Score

Get the complete analysis for BOM:500480

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹5,471.00
Price
₹4,356.35
GF Value