⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TIMKEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | TIMKEN | Market Cap | 25,240 Cr. | Current Price | 3,356 ₹ | High / Low | 3,610 ₹ |
| Stock P/E | 58.6 | Book Value | 368 ₹ | Dividend Yield | 1.08 % | ROCE | 20.9 % |
| ROE | 17.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,226 ₹ | DMA 200 | 3,117 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.43 % | PAT Qtr | 49.8 Cr. | PAT Prev Qtr | 89.5 Cr. |
| RSI | 55.2 | MACD | 67.4 | Volume | 52,313 | Avg Vol 1Wk | 1,34,829 |
| Low price | 2,200 ₹ | High price | 3,610 ₹ | PEG Ratio | 5.40 | Debt to equity | 0.01 |
| 52w Index | 82.0 % | Qtr Profit Var | -32.9 % | EPS | 57.2 ₹ | Industry PE | 52.8 |
📊 Financials
- Revenue Growth: Stable, though PAT declined (49.8 Cr vs 89.5 Cr)
- Profit Margins: EPS at 57.2 ₹, showing profitability
- Debt Ratios: Very low debt-to-equity (0.01), excellent financial discipline
- Cash Flows: Healthy, supported by consistent profits
- Return Metrics: ROCE 20.9% and ROE 17.0% indicate strong efficiency
💹 Valuation
- P/E Ratio: 58.6, slightly higher than industry average (52.8), suggesting premium valuation
- P/B Ratio: ~9.1 (Current Price / Book Value), expensive
- PEG Ratio: 5.40, indicating overvaluation relative to growth
- Intrinsic Value: Overvalued compared to peers despite strong fundamentals
🏢 Business Model & Health
- Business Model: Bearings and mechanical components manufacturing, serving industrial and automotive sectors
- Competitive Advantage: Strong brand reputation, niche expertise, and global presence
- Overall Health: Financially sound with strong returns, but valuations stretched
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 3,100–3,200 ₹ levels (close to DMA 200)
- Long-Term Holding: Suitable for growth investors; dividend yield (1.08%) adds stability
✅ Positive
- EPS of 57.2 ₹ reflects profitability
- Strong ROCE (20.9%) and ROE (17.0%) show efficiency
- Low debt-to-equity ratio ensures financial strength
⚠️ Limitation
- P/E ratio higher than industry average
- P/B ratio expensive compared to peers
- Quarterly PAT dropped significantly (49.8 Cr vs 89.5 Cr)
📉 Company Negative News
- FII holdings decreased (-0.45%), showing reduced foreign investor confidence
- Quarterly profit decline highlights volatility
📈 Company Positive News
- DII holdings increased (+0.43%), showing domestic institutional support
- Technical indicators (RSI 55.2, MACD 67.4) suggest improving momentum
🏭 Industry
- Capital goods industry P/E: 52.8, slightly lower than TIMKEN’s valuation
- Sector demand driven by industrial expansion and automotive growth
🔎 Conclusion
- TIMKEN is financially strong with consistent profitability and low debt
- Valuation is expensive compared to industry peers
- Best suited for long-term investors seeking growth exposure; entry near 3,100–3,200 ₹ offers better risk-reward