Timken India Limited

Industrials — Tools & Accessories · NSE

₹2,871.80−₹12.60 (−0.44%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Timken India Limited manufactures, sells, and distributes tapered and other roller bearings, components, accessories, and mechanical power transmission products in India, the United States, and internationally.

IndustryTools & Accessories

SectorIndustrials

Employees1,241

Annual revenue₹3,462 Cr

How does it make money?

Turns over ₹3,462 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 1,241 employees supports ₹2.79 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.79 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Some evidence

ROCE of 18.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 14.7% and earnings to grow about 23.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.7%

Est. earnings growth+23.3%

Analysts8

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 +24% while net margin moved -15% 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+24%

Margin effect-15%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 51.3x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 56.7x
✗ P/B of 7.41x is a steep premium to book

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

46/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

51.3x

3Y Median

56.7x

40 monthly readings · mean 58.7x · range 47.0x–82.3x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 56.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 42% below the peer median of 88.8x.

vs. its own history

Fair

56.7x median over 40 months · -10%

vs. sector peers

Cheap

88.8x median of 3 peers · -42%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

32.2x

PEG

25.41

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 52% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.2% to 14.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.7% to 18.5% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.5% 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.
Deleveraging frees up earnings
Debt is down 52% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 22.0% to 19.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 7.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 19.2% to 14.2%. 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.
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

1EBITDA margin holds above 17%✓ 19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 7.5% CAGR
Latest reported year was 16.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹148 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹21,601 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.41x

Rich

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

EPS (TTM)

₹56

Profitable

Profitable on a per-share basis

ROE

14.2%

Moderate

Moderate capital efficiency

ROCE

18.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

16.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.09%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹148 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

34.3x

Improving

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

Operating Margin

15.5%

Good

Healthy core-business profitability

Net Margin

11.8%

Good

Strong bottom-line conversion

Current Ratio

2.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3080.5 / 3152.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,788 Cr	₹2,896 Cr	₹3,184 Cr	₹3,462 Cr	+7.5%
EBITDA	₹613 Cr	₹612 Cr	₹660 Cr	₹663 Cr	+2.6%
EBITDA Margin	22.0%	21.1%	20.7%	19.1%	—
PAT (Net Profit)	₹391 Cr	₹392 Cr	₹462 Cr	₹415 Cr	+2.0%
EPS	₹51.95	₹52.13	₹61.45	₹55.16	+2.0%
ROE	19.2%	16.2%	15.9%	14.2%	—
ROCE	24.7%	21.0%	19.4%	18.5%	—
Total Debt	₹31 Cr	₹25 Cr	₹18 Cr	₹15 Cr	-21.9%
Free Cash Flow	₹279 Cr	₹78 Cr	₹21 Cr	₹148 Cr	-19.0%

🟢 Revenue has grown at 7.5% a year over 3 years.

🟢 EBITDA has grown at 2.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 22.0% to 19.1% over 3 years (-2.9 pts).

🟢 PAT (Net Profit) has grown at 2.0% a year over 3 years.

🟢 EPS has grown at 2.0% a year over 3 years.

🔴 ROE has fallen from 19.2% to 14.2% over 3 years (-4.9 pts).

🔴 ROCE has fallen from 24.7% to 18.5% over 3 years (-6.2 pts).

🟢 Total Debt has shrunk at 21.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 19.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,700 Cr

Total Liabilities

₹786 Cr

Cash & Equivalents

₹268 Cr

Operating Cash Flow

₹446 Cr

Capex

-₹297 Cr

Shareholding (proxy)

Institutional Holding

30.8%

Insider Holding

52.4%

Corporate Actions

Next Earnings

03 Nov 2026

Dividend Rate

₹2.5

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

6 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹3,982

+38.7% vs CMP

Target Range

₹3,600 – ₹4,560

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

Timken India secures four BIS licences for bearings; share price unchanged

Moneycontrol.com, 14 Jul

Timken India Ltd Falls to 52-Week Low of Rs 2783 as Sell-Off Deepens

MarketsMojo, 14 Oct

Timken India (BSE:522113) Stock Forecast & Analyst Predictions

Simply Wall Street, 10 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Timken India - Negative Breakout: These 8 stocks cross below their 200 DMAs

The Economic Times, 20 Aug

Timken India Ltd. Share Price Update: Large Cap Decline

Univest, 21 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Timken India Limited Annual Report FY 2025-26: Record Revenue Amid Strategic Investments

scanx.trade, 21 JulResults

🟢Potentially positiveA record operating figure, if it holds, feeds directly into the growth and profitability inputs on this page.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Risk

MiddlingBusiness Quality · Profitability

WeakGrowth · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑