CMP: 614

Cummins India Limited manufactures internal combustion engines, including diesel, reciprocating piston, gas turbine and gasoline engines. The Company also manufactures generating sets and public transport-type passenger motor vehicles, including luxury coaches and air-field buses. In addition, Cummins India Ltd. operates a computerized and fully-equipped research and development facility.

Cummins India is a good buy in large cap space. Its currently trading at a fair P/E of little over 19. Exceedingly good dividend yields of 2.44% in the last 12 months. Minimal liabilities. Revenues have grown from 1462 Crores to 4061 Crores in the last 5 years. Profits have grown more from 175 Crores to 590 Crores in the same period. NPM has smartly moved up from 12% to close to 15% over 5 years. Buy, accumulate on dips and hold for long term gains.