Timex Group India Limited

Consumer Cyclical — Luxury Goods · NSE

₹703.50+₹17.20 (+2.51%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Timex Group India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Timex Group India Limited engages in designing, manufacturing, and trading of watches in India and internationally.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees303

Annual revenue₹799 Cr

How does it make money?

Turns over ₹799 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 303 employees supports ₹2.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 64.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 67.8% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 27.5% and earnings to grow about 35.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+27.5%

Est. earnings growth+35.3%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +108% while net margin moved -22% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+108%

Margin effect-22%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 83.8x is demanding — it needs sustained high growth to justify
✗ P/B of 94.20x is a steep premium to book

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

83.8x

Sector Median

69.2x

median of 4 sector peers

⚠️Against its sector it trades 21% above the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

69.2x median of 4 peers · +21%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

61.9x

PEG

4.79

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 9.5% to 14.3% over 3 years.
Debt is being paid down
Total debt is down 82% over 3 years.
Cash generation is improving
Free cash flow is up 963% over 3 years.
Return on capital is rising
ROCE has improved from 37.9% to 64.8%.
High return on capital employed
ROCE of 64.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 76.9% to 67.8% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 64.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 9.5% to 14.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 82% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹89 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 21% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 76.9% to 67.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 21% a year✓ 27.7% CAGR
Latest reported year was 29.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹89 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 62%✓ 64.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹7,102 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

83.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

94.20x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹8.4

Profitable

Profitable on a per-share basis

ROE

67.8%

Strong

Strong capital efficiency

ROCE

64.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

29.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

83.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹89 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

44.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.7%

Good

Healthy core-business profitability

Net Margin

10.1%

Good

Strong bottom-line conversion

Current Ratio

1.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

717.7 / 648.2

Bullish alignment (short > long)

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹383 Cr	₹419 Cr	₹538 Cr	₹799 Cr	+27.7%
EBITDA	₹36 Cr	₹33 Cr	₹48 Cr	₹114 Cr	+46.6%
EBITDA Margin	9.5%	7.9%	9.0%	14.3%	—
PAT (Net Profit)	₹47 Cr	₹21 Cr	₹31 Cr	₹75 Cr	+17.5%
EPS	₹3.9	₹1.36	₹2.62	₹7.3	+23.2%
ROE	76.9%	25.6%	37.4%	67.8%	—
ROCE	37.9%	27.7%	34.3%	64.8%	—
Total Debt	₹34 Cr	₹10 Cr	₹12 Cr	₹6 Cr	-44.0%
Free Cash Flow	₹8 Cr	₹31 Cr	-₹4 Cr	₹89 Cr	+119.9%

🟢 Revenue has grown at 27.7% a year over 3 years.

🟢 EBITDA has grown at 46.6% a year over 3 years.

🟢 EBITDA Margin has risen from 9.5% to 14.3% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has grown at 17.5% a year over 3 years.

🟢 EPS has grown at 23.2% a year over 3 years.

🔴 ROE has fallen from 76.9% to 67.8% over 3 years (-9.1 pts).

🟢 ROCE has risen from 37.9% to 64.8% over 3 years (+26.9 pts).

🟢 Total Debt has shrunk at 44.0% a year over 3 years.

🟢 Free Cash Flow has grown at 119.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹338 Cr

Total Liabilities

₹226 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

₹91 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

2.2%

Insider Holding

54.4%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹820

+16.6% vs CMP

Target Range

₹820 – ₹820

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive1 mixed4 general

Timex Group India Limited (TIMEX.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 16 Oct

Timex Group India Q1 Results 2026 - Find Timex Group India Q1 Earnings Result | Timex Group India Q1 results

Livemint, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Timex Group India (TIMEX.NS) Climbs 2.41% to ₹702.85, Nears ₹737.99 Resistance - Smart Money Flow Stocks

https://www.siam.in/, 16 Oct

Systematix initiates coverage on Timex Group India with Buy rating. Check target price

The Economic Times, 27 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Timex Group India Share Price near 52-week high: valuation

Univest, 05 Oct

Timex Group India | Stock Share Price Live

MarketSmith India, 06 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 5 tripwires holding · see Key things to watch ↑