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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Timken India Ltd

About the Company - Timken India Ltd

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

Timken India Ltd. Share Price Update

Share PriceValue
Today₹2,701.50
Previous Day₹2,751.55

Basic Stock Data of Timken India Ltd

Market Cap 20,196 Cr.
Current Price 2,685
High / Low3,576/2,600
Stock P/E56.9
Book Value 294
Dividend Yield0.05 %
ROCE28.0 %
ROE21.1 %
Face Value 10.0

Data Source: screener.in

Competitors of Timken India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Menon Bearings Ltd 759 Cr. 136166/90.526.7 24.01.66 %32.1 %26.6 % 1.00
SKF India Ltd 22,945 Cr. 4,6415,535/3,96045.9 4830.86 %34.5 %24.8 % 10.0
NRB Bearings Ltd 3,133 Cr. 323402/12528.8 69.21.58 %16.6 %16.1 % 2.00
Schaeffler India Ltd 45,562 Cr. 2,9153,726/2,61249.9 3080.82 %26.8 %20.0 % 2.00
Industry Average18,099.75 Cr2,003.7537.83221.051.23%27.50%21.88%3.75

Timken India Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales383475468558510667699695609803718682
Expenses316388375434396488528563506650582546
Operating Profit678793124114180172132104153136136
OPM %18%18%20%22%22%27%25%19%17%19%19%20%
Other Income2834351122147910
Interest010001001111
Depreciation192020202222222222212121
Profit before tax5075751079516116013195137123124
Tax %25%29%25%26%27%25%26%26%26%24%27%25%
Net Profit375357797012111898711059093
EPS in Rs4.957.057.5410.539.2816.1315.6912.989.3813.8911.9812.37

Timken India Ltd Quarterly Chart

Timken India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8286867199261,0421,0561,2331,6641,6171,4112,2032,8072,812
Expenses7276136467928808981,0701,3751,2541,1591,6922,2462,284
Operating Profit1007373134162158163289363252511560528
OPM %12%11%10%14%16%15%13%17%22%18%23%20%19%
Other Income26510631021162320145340
Interest1111111231234
Depreciation15141617222943797775848786
Profit before tax1116466122142138140224306195438524479
Tax %27%31%32%34%35%30%34%34%20%27%25%25%
Net Profit81444581929792149246143327391358
EPS in Rs12.666.946.5811.8713.5014.2913.5319.7632.7219.0443.4951.9547.62
Dividend Payout %158%29%99%25%7%7%7%5%153%8%3%3%

Timken India Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-45.68%2.27%80.00%13.58%5.43%-5.15%61.96%65.10%-41.87%128.67%19.57%
Change in YoY Net Profit Growth (%)0.00%47.95%77.73%-66.42%-8.15%-10.59%67.11%3.14%-106.97%170.54%-109.10%

Timken India Ltd Growth

Compounded Sales Growth
10 Years:15%
5 Years:18%
3 Years:20%
TTM:5%
Compounded Profit Growth
10 Years:25%
5 Years:34%
3 Years:17%
TTM:-13%
Stock Price CAGR
10 Years:32%
5 Years:37%
3 Years:30%
1 Year:-6%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:18%
Last Year:21%

Timken India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital64646868686868757575757575
Reserves2492783143704625506341,2661,5011,2681,5821,9622,132
Borrowings150334816232435323112
Other Liabilities131122114144168251261411380510505489482
Total Liabilities4594635005857028779791,7751,9801,8882,1942,5572,701
Fixed Assets807997107137231251795748818860843834
CWIP102626272158546415797505373
Investments6632231738915517613099236243
Other Assets3043263544355064986197411,0639731,1851,4241,552
Total Assets4594635005857028779791,7751,9801,8882,1942,5572,701

Timken India Ltd Reserves and Borrowings Chart

Timken India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 341344421011643924934818933341
Cash from Investing Activity -50-17-30-23-67-126-64-106-104-67-75-45
Cash from Financing Activity -132-16-14-261-5-2-23-13-379-15-15
Net Cash Flow-148-20-0-73634-27119230-257-57281

Timken India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days486975696866666666968975
Inventory Days113123112110108111121125124171171125
Days Payable75586057659297929215610076
Cash Conversion Cycle8713412812211085909998112160124
Working Capital Days6898106999373101857895122106
ROCE %30%19%19%30%30%24%21%22%21%13%29%28%

Timken India Ltd Financial Efficiency Indicators Chart

Timken India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters67.80%67.80%67.80%67.80%67.80%67.80%67.80%67.80%67.80%57.70%57.70%57.70%
FIIs2.93%2.80%2.80%2.66%2.90%3.64%3.90%4.30%3.95%6.56%6.71%7.13%
DIIs11.42%12.73%13.57%13.86%13.01%12.63%12.13%12.14%12.44%19.11%19.68%22.57%
Public17.85%16.67%15.82%15.68%16.29%15.93%16.16%15.75%15.79%16.64%15.91%12.59%
No. of Shareholders48,36149,36650,19153,61955,48059,56467,50968,78566,65274,33973,42970,040

Timken India Ltd Shareholding Pattern Chart

No. of Timken India Ltd Shareholders

Timken India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund11342180.84384.24
HDFC Mid-Cap Opportunities Fund - Regular Plan7915490.45268.15
PGIM India Midcap Opportunities Fund7015192.39237.65
Mirae Asset Large Cap Fund6821310.61231.09
Nippon India Growth Fund6603860.92223.72
SBI Large & Midcap Fund5951741.01201.63
DSP Mid Cap Fund5126411.05173.67
ICICI Prudential Focused Equity Fund4059902.02137.54
SBI Contra Fund3623330.52122.75
Nippon India ELSS Tax Saver Fund3467810.83117.48

Timken India Ltd ROCE Trend

Timken India Ltd EPS Trend

Timken India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)51.9543.4919.0332.7219.92
Diluted EPS (Rs.)51.9543.4919.0332.7219.92
Cash EPS (Rs.)63.5454.7028.9942.9430.31
Book Value[Excl.RevalReserv]/Share (Rs.)270.83220.28178.61209.64178.27
Book Value[Incl.RevalReserv]/Share (Rs.)270.83220.28178.61209.64178.27
Dividend / Share (Rs.)1.501.501.5050.001.00
Revenue From Operations / Share (Rs.)373.13292.91187.52214.99221.31
PBDIT / Share (Rs.)81.5769.7936.0851.3240.54
PBIT / Share (Rs.)69.9758.5826.1241.1029.99
PBT / Share (Rs.)69.6058.2525.9340.7329.76
Net Profit / Share (Rs.)51.9543.4919.0332.7219.76
PBDIT Margin (%)21.8623.8219.2323.8718.31
PBIT Margin (%)18.7519.9913.9319.1113.55
PBT Margin (%)18.6519.8813.8218.9413.44
Net Profit Margin (%)13.9214.8410.1515.228.93
Return on Networth / Equity (%)19.1819.7410.6515.6011.08
Return on Capital Employeed (%)24.7125.0613.5418.2715.39
Return On Assets (%)15.2814.917.5812.428.37
Total Debt / Equity (X)0.010.010.020.010.01
Asset Turnover Ratio (%)1.181.080.720.861.21
Current Ratio (X)3.772.892.163.622.82
Quick Ratio (X)2.441.611.322.611.80
Inventory Turnover Ratio (X)1.641.581.361.522.52
Dividend Payout Ratio (NP) (%)2.883.44262.633.055.05
Dividend Payout Ratio (CP) (%)2.362.74172.442.323.29
Earning Retention Ratio (%)97.1296.56-162.6396.9594.95
Cash Earning Retention Ratio (%)97.6497.26-72.4497.6896.71
Interest Coverage Ratio (X)218.11214.54188.33140.30173.34
Interest Coverage Ratio (Post Tax) (X)139.91134.68100.3690.4685.50
Enterprise Value (Cr.)20763.5716203.619597.835322.054436.73
EV / Net Operating Revenue (X)7.407.356.803.292.67
EV / EBITDA (X)33.8430.8735.3713.7914.55
MarketCap / Net Operating Revenue (X)7.457.356.903.542.67
Retention Ratios (%)97.1196.55-162.6396.9494.94
Price / BV (X)10.269.777.253.633.31
Price / Net Operating Revenue (X)7.457.356.903.542.67
EarningsYield0.010.020.010.040.03

Timken India Ltd Profitability Ratios (%)

Timken India Ltd Liquidity Ratios

Timken India Ltd Liquidity Ratios (%)

Timken India Ltd Interest Coverage Ratios (X)

Timken India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Timken India Ltd

Fair Value: ₹3531.50

The stock is undervalued by 31.53% compared to the current price ₹2685

*Investments are subject to market risks

Strength and Weakness of Timken India Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 23.83%, which is a positive sign.
  2. The company has higher reserves (966.77 cr) compared to borrowings (15.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (243.92 cr) and profit (226.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 55.86 and average Dividend Yield of 17.07%.
  2. The stock has a high average Working Capital Days of 93.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 112.42, which may not be favorable.

Should I Buy Timken India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Timken India Ltd:
    1. Net Profit Margin: 13.92%
      • 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: 24.71% (Industry Average ROCE: 27.5%)
      • 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. Interest Coverage Ratio (Post Tax): 139.91
      • 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.
    4. Quick Ratio: 2.44
      • 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.
    5. ✗ Stock P/E: 56.9 (Industry average Stock P/E: 37.83)
      • 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.
    6. ✓ Total Debt / Equity: 0.01
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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