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

3.1%

NSEI:TIMKEN

-1.9%

IN Machinery

-0.7%

IN Market


1 Year Return

-1.2%

NSEI:TIMKEN

-26.3%

IN Machinery

-12.1%

IN Market

TIMKEN outperformed the Machinery industry which returned -26.3% over the past year.

TIMKEN outperformed the Market in India which returned -12.1% over the past year.


Share holder returns

TIMKENIndustryMarket
7 Day3.1%-1.9%-0.7%
30 Day-2.4%-12.5%-5.7%
90 Day27.9%-12.9%-4.3%
1 Year-1.1%-1.2%-25.2%-26.3%-10.4%-12.1%
3 Year24.0%23.5%-3.7%-7.3%19.0%13.0%
5 Year58.0%56.1%36.9%29.3%37.9%25.2%

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 based on future cash flows and its price relative to the stock market?

30.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Timken India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Timken India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Timken India is overvalued based on earnings compared to the IN Machinery industry average.

Timken India is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Timken India is poor value based on expected growth next year.


Price Based on Value of Assets

Timken India is overvalued based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

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

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Timken India's revenue is expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).

Timken India's earnings are expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).

Timken India's revenue growth is expected to exceed the India market average.

Timken India's earnings growth is positive but not above the India market average.

Timken India's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Timken India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Timken India's year on year earnings growth rate has been positive over the past 5 years.

Timken India's 1-year earnings growth exceeds its 5-year average (65.9% vs 13.6%)

Timken India's earnings growth has exceeded the IN Machinery industry average in the past year (65.9% vs 15.4%).


Return on Equity

Timken India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Timken India used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Timken India's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Timken India's financial position?


Financial Position Analysis

Timken India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Timken India's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Timken India's level of debt (1.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.8% vs 1.7% today).

Debt is well covered by operating cash flow (1077.9%, greater than 20% of total debt).

Timken India earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 38x debt.


Next Steps

Dividend

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

0.36%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Timken India's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.63%).

Timken India's dividend is below the markets top 25% of dividend payers in India (2.52%).

Timken India is not paying a notable dividend for India, therefore no need to check if the payments are stable.

Timken India is not paying a notable dividend for India, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Timken India's dividends as it is not paying a notable one for India.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (10.4x coverage).


Next Steps

Management

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

4.9yrs

Average board tenure


CEO

Sanjay Koul (54yo)

6.8yrs

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

Sanjay's remuneration is higher than average for companies of similar size in India.

Sanjay's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

4.9yrs

Average Tenure

58.5yo

Average Age

The tenure for the Timken India board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Soumitra Hazra

    Company Secretary & Chief Compliance Officer

    • Compensation: 4.93m
  • Sanjay Koul (54yo)

    Chairman

    • Tenure: 6.8yrs
    • Compensation: 35.93m
  • Regina Vasudevan

    Head of Communications

  • S. Sivaramakrishnan

    General Manager of Marketing

  • Avishrant Keshava (51yo)

    Business Controller of India

    • Tenure: 3.9yrs
    • Compensation: 7.94m
  • Kumar Sudesh (52yo)

    Managing Director of Middle East

    • Compensation: 7.15m

Board Members

  • Priya Dasgupta (64yo)

    Non Executive Independent Director

    • Tenure: 13.6yrs
    • Compensation: 450.00k
  • Ajay Das (52yo)

    Non-Independent Non-Executive Director

    • Tenure: 4.9yrs
  • Bushen Raina (75yo)

    Additional Independent Director

    • Tenure: 1.5yrs
    • Compensation: 450.00k
  • Sanjay Koul (54yo)

    Chairman

    • Tenure: 5.0yrs
    • Compensation: 35.93m
  • Rupa Mahanty (63yo)

    Non-Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: 490.00k
  • Avishrant Keshava (51yo)

    Business Controller of India

    • Tenure: 3.9yrs
    • Compensation: 7.94m

Company Information

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


Key Information

  • Name: Timken India Limited
  • Ticker: TIMKEN
  • Exchange: NSEI
  • Founded: 1987
  • Industry: industrial machinery
  • Sector: capital goods
  • Market Cap: ₹52.657b
  • Shares outstanding: 75.22m
  • Website: Click here

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 Analysis2019/08/17 12:47
End of Day Share Price2019/08/16 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.