NSEI:TIMKEN

Stock Analysis Report

Executive Summary

Timken India Limited manufactures and distributes tapered roller bearings, components, and accessories for the automotive sector and railway industry in India and internationally.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.

Share Price & News

How has Timken India's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

TIMKEN

0.8%

IN Machinery

1.6%

IN Market


1 Year Return

37.8%

TIMKEN

-14.3%

IN Machinery

0.8%

IN Market

Return vs Industry: TIMKEN exceeded the Indian Machinery industry which returned -14.3% over the past year.

Return vs Market: TIMKEN exceeded the Indian Market which returned 0.8% over the past year.


Shareholder returns

TIMKENIndustryMarket
7 Day0.7%0.8%1.6%
30 Day11.5%2.5%1.5%
90 Day5.7%-8.4%-3.3%
1 Year38.0%37.8%-12.9%-14.3%2.7%0.8%
3 Year31.7%31.1%-1.4%-5.1%22.0%16.0%
5 Year99.5%97.0%39.7%31.9%42.3%29.3%

Price Volatility Vs. Market

How volatile is Timken India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Timken India undervalued compared to its fair value and its price relative to the market?

34.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TIMKEN (₹770.35) is trading above our estimate of fair value (₹238.37)

Significantly Undervalued: TIMKEN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TIMKEN is poor value based on its PE Ratio (34x) compared to the Machinery industry average (12.4x).

PE vs Market: TIMKEN is poor value based on its PE Ratio (34x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: TIMKEN is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: TIMKEN is overvalued based on its PB Ratio (4.3x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Timken India forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TIMKEN's forecast earnings growth (12.1% per year) is above the savings rate (7.6%).

Earnings vs Market: TIMKEN's earnings (12.1% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: TIMKEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TIMKEN's revenue (11.9% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: TIMKEN's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TIMKEN's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Timken India performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TIMKEN's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: TIMKEN's earnings growth over the past year (65.9%) exceeds its 5-year average (13.6% per year).

Earnings vs Industry: TIMKEN earnings growth over the past year (65.9%) exceeded the Machinery industry 13.7%.


Return on Equity

High ROE: TIMKEN's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: TIMKEN has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: TIMKEN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Timken India's financial position?


Financial Position Analysis

Short Term Liabilities: TIMKEN's short term assets (₹8.8B) exceeds its short term liabilities (₹3.1B)

Long Term Liabilities: TIMKEN's short term assets (8.8B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: TIMKEN's debt to equity ratio (1.7%) is considered satisfactory

Reducing Debt: TIMKEN's debt to equity ratio has increased from 0.8% to 1.7% over the past 5 years.

Debt Coverage: TIMKEN's debt is well covered by operating cash flow (1077.9%).

Interest Coverage: TIMKEN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TIMKEN has a high level of physical assets or inventory.

Debt Coverage by Assets: TIMKEN's debt is covered by short term assets (assets are 37.962650x debt).


Next Steps

Dividend

What is Timken India's current dividend yield, its reliability and sustainability?

0.13%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TIMKEN's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: TIMKEN's dividend (0.13%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

Stable Dividend: TIMKEN is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: TIMKEN is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TIMKEN is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TIMKEN's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Timken India's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average board tenure


CEO

Sanjay Koul (54yo)

7yrs

Tenure

₹35,925,026

Compensation

Mr. Sanjay Koul has been the Managing Director of Timken India Limited since October 26, 2012 and Chairman of the Board since August 19, 2014 and serves as Chief Executive Officer. Mr. Koul is responsible  ...


CEO Compensation Analysis

Compensation vs. Market: Sanjay's total compensation ($USD504.23K) is about average for companies of similar size in the Indian market ($USD367.95K).

Compensation vs Earnings: Sanjay's compensation has increased by more than 20% in the past year.


Board Age and Tenure

5.1yrs

Average Tenure

54yo

Average Age

Experienced Board: TIMKEN's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Soumitra Hazra

    Company Secretary & Chief Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹4.93m
  • Sanjay Koul (54yo)

    Chairman

    • Tenure: 7yrs
    • Compensation: ₹35.93m
  • Regina Vasudevan

    Head of Communications

    • Tenure: 0yrs
  • S. Sivaramakrishnan

    General Manager of Marketing

    • Tenure: 0yrs
  • Avishrant Keshava (51yo)

    Business Controller of India

    • Tenure: 4.1yrs
    • Compensation: ₹7.94m
  • Kumar Sudesh (52yo)

    Managing Director of Middle East

    • Tenure: 0yrs
    • Compensation: ₹7.15m

Board Members

  • Priya Dasgupta (64yo)

    Non Executive Independent Director

    • Tenure: 13.8yrs
    • Compensation: ₹450.00k
  • Ajay Das (52yo)

    Non-Independent Non-Executive Director

    • Tenure: 5.1yrs
  • Bushen Raina (75yo)

    Additional Independent Director

    • Tenure: 1.7yrs
    • Compensation: ₹450.00k
  • Sanjay Koul (54yo)

    Chairman

    • Tenure: 7yrs
    • Compensation: ₹35.93m
  • Avishrant Keshava (51yo)

    Business Controller of India

    • Tenure: 4.1yrs
    • Compensation: ₹7.94m

Company Information

Timken India Limited's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Timken India Limited
  • 39-42, Electronic City
  • Phase I
  • Bengaluru
  • Karnataka
  • 560100
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
522113BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2000
TIMKENNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2000

Biography

Timken India Limited manufactures and distributes tapered roller bearings, components, and accessories for the automotive sector and railway industry in India and internationally. The company operates thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:44
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.