Check Before You Invest : Timken India Ltd

Q: 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: Is Timken India Ltd a good quality company?

Timken India Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Timken India Ltd undervalued or overvalued?

Timken India Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 62.8, Historic Median: 60.04. Price to Book, Current: 9.59, Historic Median: 10.07. Price to Sales, Current: 8.22, Historic Median: 8.01. EV to EBITDA, Current: 42.83, Historic Median: 37.53

Q: 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

Q: 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 14.25%, indicating slower growth.

Q: 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 in line with its 5-year median of 20.9%, indicating stable margins.

Q: 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 in line with its 5-year median of 19.7% indicating stable margins.

Q: Net Profit Margin of Timken India Ltd?

Timken India Ltd Net Profit Margin is 14.21% for FY-2025, is in line with its 5-year median of 13.92%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 20.3, Historic Median: 20.9. Operating Profit Margin (%), Current: 18.79, Historic Median: 19.7. Net Profit Margin (%), Current: 14.21, Historic Median: 13.92

Q: Return on Asset of Timken India Ltd?

Timken India Ltd Return on Asset is 11.99%, which is in line with its 5-year historical median of 12.37%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Timken India Ltd?

Timken India Ltd Return on capital employed is 21.15% for FY-2025, which is below its 5-year historical median of 23.52%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Timken India Ltd undervalued or overvalued?

Timken India Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	62.8	60.04
Price to Book	9.59	10.07
Price to Sales	8.22	8.01
EV to EBITDA	42.83	37.53

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 14.25%, 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 in line with its 5-year median of 20.9%, indicating stable 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 in line with its 5-year median of 19.7% indicating stable margins.

Q.4 Net Profit Margin of Timken India Ltd?

Timken India Ltd Net Profit Margin is 14.21% for FY-2025, is in line with its 5-year median of 13.92%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	20.3	20.9
Operating Profit Margin (%)	18.79	19.7
Net Profit Margin (%)	14.21	13.92

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Timken India Ltd?

Timken India Ltd Return on Asset is 11.99%, which is in line with its 5-year historical median of 12.37%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Timken India Ltd?

Timken India Ltd Return on capital employed is 21.15% for FY-2025, which is below its 5-year historical median of 23.52%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Timken India Ltd?

Timken India Ltd Return on equity is 17% for FY-2025, which is in line with its 5-year historical median of 17.61%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Timken India Ltd?

Timken India Ltd Cash conversion cycle is 98 days, above its 5-year historical median of 91 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.84	0.92
ROE (%)	17	17.61
ROCE (%)	21.15	23.52
Cash Conversion Cycle	98 days	91 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Timken India Ltd?

Timken India Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, 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

D: Promoter shareholding and pledge status of Timken India Ltd?

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)

E: How does Timken India Ltd performance compare with that of its Peers?

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	5-year Industry Median
Revenue Growth (%)	8.2	7.7
Gross Profit Growth (%)	4.6	18
Operating Profit Growth (%)	3.5	15.4
Net Profit Growth (%)	14	16.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.84	0.89
ROE (%)	17	14.63
ROCE (%)	21.15	13.99
Cash Conversion Cycle (days)	97.54	103

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 21.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	21.2%	21.6%	4.7%	28.6%

Q.2 Valuation ratios of Timken India Ltd vs historical?

The current P/E ratio of 62.8 is in line with than its historical median of 60.04, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	62.8	60.04	22.77
Price to Book	9.59	10.07	2.84
Price to Sales	8.22	8.01	2.46
EV to EBITDA	42.83	37.53	13.87

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Check Before You Invest : Timken India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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