1. At a Glance
Timex India has finally gotten off snooze mode. After decades of being a ’90s nostalgia stock, it posted record profits, hit ₹538 Cr in annual revenue, 69% ROE, and is now trading at a nosebleed 72x P/E. But with a razor-thin margin history and a recent promoter OFS, the clock may be ticking on this sugar rush.
2. Introduction with Hook
Remember when wearing a Timex was the ultimate flex before smartphones stole the spotlight? Well, Timex India might be late to the luxury party, but it’s arrived with a shiny new balance sheet, record revenues, and an aggressive growth play.
- 3-Year PAT CAGR: 113%
- TTM Revenue: ₹538 Cr (up from ₹383 Cr in FY23)
But this Cinderella story has a catch—the prince (read: promoter) just dumped 15% equity in the middle of the ball.
3. Business Model (WTF Do They Even Do?)
Timex India makes, sells, and services watches—analog, digital, sporty, premium—across multiple brands and price points. It also provides IT support to its Dutch parent company.
Revenue Sources:
- Domestic watch sales (Timex, Helix, and licensed brands)
- After-sales service (strap changes, battery changes, ego boosts)
- Export of tech services to Timex Group B.V.
Positioning:
- Mass to mid-premium play
- Competing with Titan in mid-range, Ethos in luxury
- Slowly inching into e-commerce and brand collaborations
4. Financials Overview
| Metric | FY23 | FY24 | FY25 (Est) |
|---|---|---|---|
| Revenue (₹ Cr) | 383 | 419 | 538 |
| Operating Profit (₹ Cr) | 38 | 32 | 48 |
| Net Profit (₹ Cr) | 47 | 21 | 31 |
| EPS (₹) | 4.61 | 2.06 | 3.11 |
| ROE | 4.61% | 2.06% | 69.2% |
| ROCE | 48% | 33% | 49% |
TL;DR: Margin watch (pun intended). The top line is solid; bottom line needs better battery life.
5. Valuation
Timex is currently trading at a valuation usually reserved for luxury champagne makers or loss-making tech IPOs.
| Method | FV Range |
|---|---|
| P/E-based (25x-35x) | ₹100 – ₹140 |
| DCF (conservative) | ₹115 – ₹160 |
| EV/EBITDA (20x) | ₹135 – ₹170 |
Current Price: ₹225 = LOL
Either the market sees it as Titan 2.0, or it’s just caught in a rerun of “Overhype: The Sequel.”
6. What’s Cooking – News, Triggers, Drama
- Promoter OFS: Sold 15% equity at ₹175; stake down from 74.93% to 59.93%.
- Result Boom: Q4FY25 PBT up 41%, revenue up 28%.
- Tax Notices: GST discrepancies and Income Tax show-cause notices filed in early 2025.
- Auditor Shuffle: New secretarial and internal auditors appointed in May.
Biggest Drama: Promoter bailed on a high. You sure you want in at this party?
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹10 Cr | ₹10 Cr | ₹10 Cr |
| Reserves | ₹-24 Cr | ₹-3 Cr | ₹74 Cr |
| Borrowings | ₹110 Cr | ₹86 Cr | ₹12 Cr |
| Total Assets | ₹194 Cr | ₹201 Cr | ₹252 Cr |
Highlights:
- Debt-free soon? Nearly.
- Reserves flipped from negative to positive faster than your ex’s opinion after you got rich.
- Balance sheet is leaner and meaner than ever.
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow (₹ Cr) |
|---|---|---|---|---|
| 2023 | ₹10 | ₹-1 | ₹-8 | ₹1 |
| 2024 | ₹32 | ₹-1 | ₹-28 | ₹3 |
| 2025 | ₹-3 | ₹-0 | ₹-0 | ₹-4 |
Verdict:
Operating cash flows were positive—until they weren’t. FY25 saw a slip, but overall, not alarming yet. Keep an eye on that negative CFO though.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 48% | 33% | 49% |
| ROE | 4.6% | 2.0% | 69.2% |
| Debtor Days | 50 | 45 | 37 |
| Inventory Days | 161 | 159 | 178 |
| CCC | 100 | 96 | 129 |
| Working Capital Days | 71 | 68 | 79 |
Commentary:
ROCE is Titanic. ROE is finally looking Titan-esque. Inventory days, though? That’s a lot of unsold watches ticking away in warehouses.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM % |
|---|---|---|---|---|---|
| FY23 | 383 | 38 | 47 | 4.61 | 10% |
| FY24 | 419 | 32 | 21 | 2.06 | 8% |
| FY25 | 538 | 48 | 31 | 3.11 | 9% |
Note:
The margins are ticking, but not exploding. Good, but not good enough for a 72x P/E.
11. Peer Comparison
| Company | Sales (Cr) | PAT (Cr) | OPM % | ROE % | P/E | Mcap (Cr) |
|---|---|---|---|---|---|---|
| Titan | 60,456 | 3,336 | 9.4% | 31.8% | 89x | ₹2.98L Cr |
| Kalyan Jewellers | 25,045 | 714 | 6.0% | 15.9% | 84x | ₹60K Cr |
| Ethos Ltd | 1,251 | 96 | 15.0% | 10.3% | 75x | ₹7.2K Cr |
| Timex | 538 | 31 | 9.0% | 69.2% | 72x | ₹2.3K Cr |
Timex’s Place:
A minnow trying to punch in Titan’s league, wearing Casio shoes. It’s not there yet, but the trajectory is interesting.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: Dropped to 59.93% after OFS
- FIIs: Barely 0.11%
- Retail Buzz: Over 44k shareholders
- Dividend Payout: Still tighter than a smartwatch clasp. Zero payout policy.
Fun Fact:
Despite being one of America’s oldest watchmakers, Timex India spent 20 years behaving like it forgot how to sell time. Until now.
13. EduInvesting Verdict™
Timex India has finally found its footing in the Indian wrist game. A lean balance sheet, improving margins, and rapid growth all scream “potential multibagger.” But here’s the alarm: it’s not cheap anymore. Valuations are stretched, promoter has cashed out 15%, and margin expansion isn’t guaranteed in a fiercely competitive watch market.
This is a turnaround story with swag—but also risk. The gears are moving, but one bad quarter and this clock could tick in reverse.
Metadata
Written by EduInvesting Research | 13 July 2025
Tags: Timex India, Watches, Consumer Durables, Titan Competitor, Retail Boom, Promoter OFS, Turnaround Stock
