Cummins India Limited

“Cummins India is an exceptional industrial compounder with a durable multi-layered moat, pristine balance sheet, and a decade-long structural demand runway in India's power and infrastructure buildout — but it trades at 67x trailing earnings and a 1% FCF yield, pricing in flawless 20%+ growth for a full decade. Even optimistic 10-year DCF scenarios barely deliver 8-9% annualised returns. The business deserves a permanent place on the watchlist and a re-entry trigger around 40-47x earnings (approximately ₹3,200-₹3,800), where the risk/reward becomes genuinely compelling. Existing holders should trim to a core position and wait.”