1. At a Glance
Timken India, born as a Tata JV in the ’80s and now a full-fledged global bearings powerhouse, is quietly building India’s rail, auto, and industrial backbone. Profitable? Always. Scandal-free? Not really. With a shiny new Bharuch plant and court summons stacking up, the company’s rolling forward — and into a few speed bumps.
2. Introduction with Hook
Imagine being so essential that trains, factories, and wind turbines can’t move without you… and yet the stock drops 17% YoY. That’s Timken for you — the unassuming gear-turner of India’s industrial machine.
- FY25 PAT ₹447 Cr, Sales ₹3,148 Cr
- Nearly debt-free, 21% ROCE
- Still recovering from a ₹25 Cr income tax hit and a ₹95 Cr PF fine
Bearings? Solid. Headlines? Not so much.
3. Business Model (WTF Do They Even Do?)
Timken India makes:
- Anti-friction bearings (tapered, cylindrical, spherical, etc.)
- Mechanical Power Transmission Products (gears, couplings)
- Maintenance Services and Refurbishment
- Industry segments: Railways, Automotive, Wind Energy, Cement, Steel, Oil & Gas
Revenue split isn’t public, but rail + auto dominate. And now with Bharuch plant — industrial capacity’s getting supersized.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA | PAT | EPS (₹) | OPM % |
|---|---|---|---|---|---|
| FY22 | 2,203 | 511 | 327 | 43.5 | 23% |
| FY23 | 2,807 | 560 | 391 | 52.0 | 20% |
| FY24 | 2,910 | 572 | 392 | 52.1 | 20% |
| FY25 | 3,148 | 592 | 447 | 59.5 | 19% |
Timken is consistent, clean, and boring — like a Swiss bank vault. Until, of course, you read the footnotes.
5. Valuation
- Current P/E: 56.6
- FY25 EPS: ₹59.5
- CMP: ₹3,373
- Fair Value (P/E 40–50) = ₹2,380–₹2,975
- Book Value: ₹378 → P/B ~9x
Overvalued by classic metrics, but it trades like a blue-chip monopoly. And honestly, in India’s bearing space, it kind of is.
6. What’s Cooking – News, Triggers, Drama
- 🎯 New Bharuch plant operational from June 30, 2025 – ₹700 Cr investment
- 🏭 Capex: ₹120 Cr for Jamshedpur expansion
- ⚖️ Ongoing PF litigation (₹94.65 Cr damages) + ₹25 Cr additional income tax
- 👋 CFO exit in March 2025, new CFO onboard
- 🧾 Consumer court & EPF violations galore
What’s cooking? A little progress, a little chaos, and a ₹700 Cr Bharuch biryani.
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹75 | ₹75 | ₹75 |
| Reserves | ₹1,962 | ₹2,342 | ₹2,770 |
| Borrowings | ₹31 | ₹25 | ₹17 |
| Fixed Assets | ₹843 | ₹853 | ₹809 |
| CWIP | ₹53 | ₹104 | ₹592 |
| Investments | ₹236 | ₹161 | ₹117 |
| Total Assets | ₹2,557 | ₹2,988 | ₹3,425 |
Debt down, CWIP spiking — Bharuch clearly eating up capital. But they’re paying from reserves, not loans. Classic Timken.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹341 | -₹45 | -₹15 | ₹281 |
| FY24 | ₹340 | -₹228 | -₹17 | ₹94 |
| FY25 | ₹387 | -₹338 | -₹27 | ₹22 |
Still cash-rich, but major Bharuch capex bleeding through investing activity. Financing mostly via internal accruals — nice.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 28% | 23% | 21% |
| ROE (%) | 18% | 18% | 17% |
| Debtor Days | 75 | 82 | 81 |
| Inventory Days | 125 | 142 | 124 |
| CCC (days) | 124 | 142 | 129 |
| P/E | 54.7 | 58.2 | 56.6 |
| P/B | 9.2x | 8.92x |
ROCE falling slightly. High CCC but manageable. Sexy? Yes — in a CFO’s kind of way.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | 2,807 | 2,910 | 3,148 |
| EBITDA | 560 | 572 | 592 |
| PAT | 391 | 392 | 447 |
| EPS (₹) | 52.0 | 52.1 | 59.5 |
| Dividend % | 3% | 5% | 61% |
Consistent top and bottom-line growth. EPS compounding at ~12%. This is a textbook “steady compounder.”
11. Peer Comparison
| Company | P/E | ROE | ROCE | OPM | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|---|
| Timken India | 56.6 | 17% | 21% | 19% | 3,148 | ₹447 |
| SKF India | 42.3 | 21% | 28% | 15% | 4,920 | ₹566 |
| Grindwell Norton | 55.3 | 16% | 21% | 18% | 2,812 | ₹346 |
| CUMI | 53.0 | 11% | 16% | 14% | 4,894 | ₹358 |
| Wendt India | 65.7 | 15% | 20% | 22% | 234 | ₹34 |
Timken has pricing power but commands a premium — perhaps too much?
12. Miscellaneous – Shareholding, Promoters
| Quarter | Promoters | FIIs | DIIs | Public |
|---|---|---|---|---|
| Mar ’23 | 67.8% | 3.95% | 12.4% | 15.8% |
| Mar ’24 | 57.7% | 7.2% | 23.6% | 11.4% |
| Mar ’25 | 51.0% | 10.7% | 26.8% | 11.5% |
Promoters reduced 16.8% in 2 years — hmmm. But DIIs & FIIs scooped it up. Retail hasn’t moved. Perhaps price already factoring in leadership confidence?
13. EduInvesting Verdict™
Timken India is the kind of company you marry, not date. Strong fundamentals, sticky customers, and boringly profitable. But the stock’s not cheap. And with all the PF litigation, insider trading reports, and court summons — it’s not squeaky clean either.
The ₹700 Cr Bharuch plant is the next chapter. If executed well, this could re-rate the stock. But at 9x book and 56x earnings, the margin of safety is… somewhere in Jamshedpur, lost in a ball bearing.
Metadata
– Written by EduInvesting Team | 15 July 2025
– Tags: Timken India, Bearings Stock, Industrial Compounding, Rail Infra, Bharuch Plant, PF Litigation, Bluechip Manufacturing
