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Check Before You Invest : Timken India Ltd

BSE: 522113 NSE: TIMKEN ISIN: INE325A01013
  |   Sector:  Automobiles   |   Industry:  Bearings

Snapshot

Q.1 Which industry/sub-sector does Timken India Ltd belong to?
Timken India Ltd belongs to the Automobiles sector, operating specifically within the Bearings segment.
Q.2 Is Timken India Ltd a good quality company?
Timken India Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Timken India Ltd undervalued or overvalued?
Timken India Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Timken India Ltd a good buy now?
Timken India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Timken India Ltd?
Timken India Ltd revenue growth is 8.2% for FY-2025 , which is below its 5 year CAGR of 14.3% , indicating slower growth.
Q.2 Gross Profit margin of Timken India Ltd?
Timken India Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.3% for FY-2025 , which is below its 5 year median of 20.9% , indicating decreasing margins.
Q.3 Operating Profit Margin of Timken India Ltd?
Timken India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.79% for FY-2025 , which is below its 5 year median of 19.7% indicating decreasing margins.
Q.4 Net Profit Margin of Timken India Ltd?
Timken India Ltd Net Profit Margin is 14.21% for FY-2025 , is above with its 5 year median of 13.92%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 20.3 20.9
Operating Profit Margin 18.79 19.7
Net Profit Margin 14.21 13.92
Q.5 Return on Asset of Timken India Ltd?
Timken India Ltd Return on Asset is 11.99%, which is below its 5 year historical median of 12.37%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Timken India Ltd?
Timken India Ltd Return on equity is 17% for FY-2025 , which is below its historical median of 17.61%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Timken India Ltd?
Timken India Ltd Return on capital employed is 21.15% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Timken India Ltd?
Timken India Ltd Cash conversion cycle is 98 days, above its historical median of 91 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.84 0.92
ROE 17 17.61
ROCE 21.15 23.52
Cash Conversion Cycle 98 days 91 days
Q.9 Debt to Equity ratio of Timken India Ltd?
Timken India Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.07 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Timken India Ltd?
Timken India Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Timken India Ltd?
Promoters hold 51.05% of the Timken India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Timken India Ltd vs industry peers?
Timken India Ltd revenue CAGR is 14.25% , compared to the industry median CAGR of 7.70% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 3,147.8 150.2
Gross Profit 639 16.5
Operating Profit 592 15
Net Profit 447 11
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.84 0.9
ROE 17 15.26
ROCE 21.15 17.78
Cash Conversion Cycle (days) 97.54 104

Valuation & price assessment

Q.1 Stock return of Timken India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 21.5% 21.3% 6.4% 35.8%
Q.3 Valuation ratios of Timken India Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 61.03 43.14 40.94
Price to Book 9.32 5.43 2.91
Price to Sales 7.99 6.40 2.25
EV to EBITDA 41.61 26.51 13.82

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