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Last Updated on: 26 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 522113 | NSE: TIMKEN

Timken India Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 9:32 pm

Market Cap 23,789 Cr.
Current Price 3,164
High / Low 4,818/2,490
Stock P/E60.2
Book Value 344
Dividend Yield0.08 %
ROCE23.4 %
ROE17.6 %
Face Value 10.0
PEG Ratio6.17

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Timken India Ltd

Competitors of Timken India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Galaxy Bearings Ltd 333 Cr. 1,046 1,800/1,00017.3 3180.00 %27.7 %22.3 % 10.0
Deccan Bearings Ltd 20.1 Cr. 92.2 92.2/35.9 0.780.00 %68.8 %68.8 % 10.0
Benara Bearings & Pistons Ltd 31.0 Cr. 17.5 26.8/13.6 10.80.00 %2.39 %14.1 % 10.0
Austin Engineering Company Ltd 66.2 Cr. 190 268/16715.6 1820.00 %8.91 %6.17 % 10.0
Timken India Ltd 23,789 Cr. 3,164 4,818/2,49060.2 3440.08 %23.4 %17.6 % 10.0
Industry Average17,143.00 Cr1,418.1934.81194.440.73%24.91%22.40%7.22

All Competitor Stocks of Timken India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales468558510667699695609803718682612898
Expenses375434396488528563506650582546510699
Operating Profit93124114180172132104153136136102199
OPM %20%22%22%27%25%19%17%19%19%20%17%22%
Other Income343511221479101111
Interest000100111111
Depreciation202022222222222121212122
Profit before tax75107951611601319513712312491187
Tax %25%26%27%25%26%26%26%24%27%25%26%24%
Net Profit5779701211189871105909368141
EPS in Rs7.5410.539.2816.1315.6912.989.3813.8911.9812.378.9818.80

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales6867199261,0421,0561,2331,6641,6171,4112,2032,8072,910
Expenses6136467928808981,0701,3751,2541,1591,6922,2462,337
Operating Profit7373134162158163289363252511560572
OPM %11%10%14%16%15%13%17%22%18%23%20%20%
Other Income510631021162320145341
Interest111111231234
Depreciation141617222943797775848785
Profit before tax6466122142138140224306195438524524
Tax %31%32%34%35%30%34%34%20%27%25%25%25%
Net Profit444581929792149246143327391392
EPS in Rs6.946.5811.8713.5014.2913.5319.7632.7219.0443.4951.9552.13
Dividend Payout %29%99%25%7%7%7%5%153%8%3%3%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)2.27%80.00%13.58%5.43%-5.15%61.96%65.10%-41.87%128.67%19.57%0.26%
Change in YoY Net Profit Growth (%)0.00%77.73%-66.42%-8.15%-10.59%67.11%3.14%-106.97%170.54%-109.10%-19.32%

Timken India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:12%
3 Years:27%
TTM:8%
Compounded Profit Growth
10 Years:24%
5 Years:21%
3 Years:40%
TTM:10%
Stock Price CAGR
10 Years:20%
5 Years:29%
3 Years:18%
1 Year:-2%
Return on Equity
10 Years:17%
5 Years:18%
3 Years:20%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:41 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital64686868686875757575757575
Reserves2783143704625506341,2661,5011,2681,5821,9622,3422,509
Borrowings033481623243532312518
Other Liabilities122114144168251261411380510505489545598
Total Liabilities4635005857028779791,7751,9801,8882,1942,5572,9883,200
Fixed Assets7997107137231251795748818860843853824
CWIP26262721585464157975053104291
Investments32231738915517613099236161238
Other Assets3263544355064986197411,0639731,1851,4241,8701,847
Total Assets4635005857028779791,7751,9801,8882,1942,5572,9883,200

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1344421011643924934818933341340
Cash from Investing Activity +-17-30-23-67-126-64-106-104-67-75-45-228
Cash from Financing Activity +-16-14-261-5-2-23-13-379-15-15-17
Net Cash Flow-20-0-73634-27119230-257-5728194

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow73.0070.00131.00158.00150.00147.00266.00339.00217.00479.00529.00547.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days697569686666666696897582
Inventory Days123112110108111121125124171171125142
Days Payable58605765929792921561007682
Cash Conversion Cycle13412812211085909998112160124142
Working Capital Days98106999373101857895122106112
ROCE %19%19%30%30%24%21%22%21%13%29%28%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters67.80%67.80%67.80%67.80%67.80%67.80%67.80%67.80%57.70%57.70%57.70%57.70%
FIIs2.80%2.80%2.66%2.90%3.64%3.90%4.30%3.95%6.56%6.71%7.13%7.20%
DIIs12.73%13.57%13.86%13.01%12.63%12.13%12.14%12.44%19.11%19.68%22.57%23.62%
Public16.67%15.82%15.68%16.29%15.93%16.16%15.75%15.79%16.64%15.91%12.59%11.45%
No. of Shareholders49,36650,19153,61955,48059,56467,50968,78566,65274,33973,42970,04062,838

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund1,134,2180.84384.24346,7812024-12-25227.07%
HDFC Mid-Cap Opportunities Fund - Regular Plan791,5490.45268.15346,7812024-12-25128.26%
PGIM India Midcap Opportunities Fund701,5192.39237.65346,7812024-12-25102.29%
Mirae Asset Large Cap Fund682,1310.61231.09346,7812024-12-2596.7%
Nippon India Growth Fund660,3860.92223.72346,7812024-12-2590.43%
SBI Large & Midcap Fund595,1741.01201.63346,7812024-12-2571.63%
ICICI Prudential Focused Equity Fund405,9902.02137.54346,7812024-12-2517.07%
SBI Contra Fund362,3330.52122.75346,7812024-12-254.48%
Nippon India ELSS Tax Saver Fund346,7810.83117.48346,7812024-12-250%
HDFC Large and Mid Cap Fund - Regular Plan344,7110.73116.78346,7812024-12-25-0.6%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)52.1351.9543.4919.0332.72
Diluted EPS (Rs.)52.1351.9543.4919.0332.72
Cash EPS (Rs.)63.4663.5454.7028.9942.94
Book Value[Excl.RevalReserv]/Share (Rs.)321.36270.83220.28178.61209.64
Book Value[Incl.RevalReserv]/Share (Rs.)321.36270.83220.28178.61209.64
Dividend / Share (Rs.)2.501.501.501.5050.00
Revenue From Operations / Share (Rs.)386.81373.13292.91187.52214.99
PBDIT / Share (Rs.)81.5281.5769.7936.0851.32
PBIT / Share (Rs.)70.1969.9758.5826.1241.10
PBT / Share (Rs.)69.6969.6058.2525.9340.73
Net Profit / Share (Rs.)52.1351.9543.4919.0332.72
PBDIT Margin (%)21.0721.8623.8219.2323.87
PBIT Margin (%)18.1418.7519.9913.9319.11
PBT Margin (%)18.0118.6519.8813.8218.94
Net Profit Margin (%)13.4713.9214.8410.1515.22
Return on Networth / Equity (%)16.2219.1819.7410.6515.60
Return on Capital Employeed (%)20.9924.7125.0613.5418.27
Return On Assets (%)13.1215.2814.917.5812.42
Total Debt / Equity (X)0.000.010.010.020.01
Asset Turnover Ratio (%)1.051.181.080.720.86
Current Ratio (X)3.913.772.892.163.62
Quick Ratio (X)2.502.441.611.322.61
Inventory Turnover Ratio (X)1.461.641.581.361.52
Dividend Payout Ratio (NP) (%)2.872.883.44262.633.05
Dividend Payout Ratio (CP) (%)2.362.362.74172.442.32
Earning Retention Ratio (%)97.1397.1296.56-162.6396.95
Cash Earning Retention Ratio (%)97.6497.6497.26-72.4497.68
Interest Coverage Ratio (X)161.83218.11214.54188.33140.30
Interest Coverage Ratio (Post Tax) (X)104.49139.91134.68100.3690.46
Enterprise Value (Cr.)21146.7020763.5716203.619597.835322.05
EV / Net Operating Revenue (X)7.277.407.356.803.29
EV / EBITDA (X)34.4933.8430.8735.3713.79
MarketCap / Net Operating Revenue (X)7.387.457.356.903.54
Retention Ratios (%)97.1297.1196.55-162.6396.94
Price / BV (X)8.8810.269.777.253.63
Price / Net Operating Revenue (X)7.387.457.356.903.54
EarningsYield0.010.010.020.010.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Timken India Ltd as of December 26, 2024 is: 3,647.66

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 26, 2024, Timken India Ltd is Undervalued by 15.29% compared to the current share price 3,164.00

Intrinsic Value of Timken India Ltd as of December 26, 2024 is: 4,003.77

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 26, 2024, Timken India Ltd is Undervalued by 26.54% compared to the current share price 3,164.00

Last 5 Year EPS CAGR: 9.76%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.25%, which is a positive sign.
  2. The company has higher reserves (1,156.77 cr) compared to borrowings (17.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (195.25 cr) and profit (240.25 cr) over the years.
  1. The stock has a high average Working Capital Days of 97.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 117.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Timken India Ltd:
    1. Net Profit Margin: 13.47%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.99% (Industry Average ROCE: 24.91%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.22% (Industry Average ROE: 22.4%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 104.49
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.5
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 60.2 (Industry average Stock P/E: 34.81)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Timken India Ltd. is a Public Limited Listed company incorporated on 12/12/1996 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L29130KA1996PLC048230 and registration number is 048230. Currently Company is involved in the business activities of Manufacture of bearings, gears, gearing and driving elements. Company’s Total Operating Revenue is Rs. 2203.24 Cr. and Equity Capital is Rs. 75.22 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
BearingsNo. 39-42, Electronic City, Phase II, Bengaluru Karnataka 560100tilinvestor@timken.com
http://www.timken.com/en-in
Management
NamePosition Held
Mr. Sanjay KoulChairman & Managing Director
Mr. Avishrant KeshavaWholeTime Director & CFO
Mr. P S DasguptaIndependent Director
Mrs. N S RamaIndependent Director
Mr. Douglas SmithDirector
Mr. George J OllapallyIndependent Director
Mr. V VeerappanIndependent Director
Mr. Hansal PatelDirector

FAQ

What is the latest intrinsic value of Timken India Ltd?

The latest intrinsic value of Timken India Ltd as on 26 December 2024 is ₹3647.66, which is 15.29% higher than the current market price of ₹3,164.00. The stock has a market capitalization of 23,789 Cr. and recorded a high/low of 4,818/2,490 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹2,509 Cr and total liabilities of ₹3,200 Cr.

What is the Market Cap of Timken India Ltd?

The Market Cap of Timken India Ltd is 23,789 Cr..

What is the current Stock Price of Timken India Ltd as on 26 December 2024?

The current stock price of Timken India Ltd as on 26 December 2024 is 3,164.

What is the High / Low of Timken India Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Timken India Ltd stocks is 4,818/2,490.

What is the Stock P/E of Timken India Ltd?

The Stock P/E of Timken India Ltd is 60.2.

What is the Book Value of Timken India Ltd?

The Book Value of Timken India Ltd is 344.

What is the Dividend Yield of Timken India Ltd?

The Dividend Yield of Timken India Ltd is 0.08 %.

What is the ROCE of Timken India Ltd?

The ROCE of Timken India Ltd is 23.4 %.

What is the ROE of Timken India Ltd?

The ROE of Timken India Ltd is 17.6 %.

What is the Face Value of Timken India Ltd?

The Face Value of Timken India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Timken India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE