Timken India Limited (TIMKEN) AI Stock Analysis

• Market Cap: ₹221.71B
• Dividend Yield: 1.18%
• Average Volume (3M): 25.50K
• Price to Earnings (P/E): 48.7
• Beta (1Y): 1.13
• Revenue Growth: 4.81%
• EPS Growth: 15.08%
• Country: IN
• Employees: 1,279
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 11.90
• Shares Outstanding: 75,218,735
• 10 Day Avg. Volume: 41,967
• 30 Day Avg. Volume: 25,500
• PEG Ratio: 3.18
• Price to Book (P/B): 7.05
• Price to Sales (P/S): 6.37
• P/FCF Ratio: 2.06K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹3,220.00 ▲(4.90% Upside)

Timken India Limited's strong financial performance is the primary driver of its overall score, supported by robust revenue growth and solid profitability margins. However, the stock's valuation appears high, and technical indicators suggest a lack of strong momentum, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability and market position.

Profitability Margins

High profitability margins reflect efficient cost management and pricing power, supporting long-term financial health and competitive advantage.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and flexibility, enabling the company to invest in growth opportunities.

Negative Factors

Free Cash Flow Constraints

Limited free cash flow generation may restrict the company's ability to fund new projects, pay dividends, or reduce debt, impacting long-term growth.

EBITDA Margin Decline

A decline in EBITDA margin could indicate rising costs or pricing pressures, potentially affecting profitability and operational efficiency over time.

Free Cash Flow Management

Challenges in free cash flow management could limit the company's ability to reinvest in business growth, impacting its competitive position and financial resilience.

Timken India Limited Business Overview & Revenue Model

Company Description

Timken India Limited manufactures and distributes tapered roller bearings, other roller bearings, components, and accessories for the automotive sector and railway industry in India, the United States, and internationally. The company offers cylindrical roller, plain, spherical roller, tapered roller, thrust, precision, slewing, and ball bearing, as well as seals, maintenance tools, housed units, and wheel hub under the Timken brand; and integrated bearing assemblies, driveline center support bearings for commercial and light vehicles, and lubrication and lubrication systems. It also provides mechanical power transmission products, such as encoders, gear boxes/transmissions, couplings and joints, belts, augers, linear motion products, brakes and clutches, commercial vehicles wheels and accessories and tools, and chains. In addition, the company offers maintenance contract and refurbishment services; and uptower and motor repair services. The company was formerly known as Tata Timken Limited and changed its name to Timken India Limited in July 1999. The company was incorporated in 1987 and is based in Bengaluru, India. Timken India Limited is a subsidiary of Timken Singapore PTE Limited.

How the Company Makes Money

Timken India Limited generates revenue primarily through the sale of its bearing products and mechanical power transmission solutions. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and aftermarket customers, which includes industries such as automotive, aerospace, and heavy machinery. Key revenue streams include the sale of different types of bearings, seals, lubrication systems, and related services. Additionally, TIMKEN benefits from long-term contracts with major industrial players and OEMs, which provide a steady income flow. The company also capitalizes on its strong brand reputation and extensive distribution network to reach various markets across India, further contributing to its earnings.

Timken India Limited Financial Statement Overview

Summary

Timken India Limited exhibits strong financial health with robust revenue growth, solid profitability margins, and a strong balance sheet with low leverage. However, attention to free cash flow generation is essential to ensure long-term liquidity.

Income Statement

Timken India Limited has demonstrated robust revenue growth, with a revenue increase of 9.89% from 2024 to 2025. The company maintains strong profitability margins, with a gross profit margin of 40.57% and a net profit margin of 13.99% for 2025. The EBIT margin is impressive at 35.26%, indicating efficient cost management and operational performance. However, EBITDA margin slightly decreased to 20.07%, warranting attention.

Balance Sheet

The company's financial stability is reflected in a strong equity ratio of 83.07% for 2025, suggesting a solid financial foundation. The debt-to-equity ratio is low at 0.01, indicating minimal leverage and reduced financial risk. The return on equity (ROE) is commendable at 15.73%, showcasing effective use of equity to generate profits. Overall, the balance sheet indicates financial strength, though maintaining equity levels is crucial for sustained stability.

Cash Flow

Timken India Limited has shown positive cash flow management with a 24.57% increase in free cash flow from 2024 to 2025. The operating cash flow to net income ratio of 0.87 indicates healthy cash generation relative to net income. However, a cautious approach is recommended given the free cash flow to net income ratio of 0.02, suggesting potential constraints in free cash flow relative to net earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.73B	31.48B	29.10B	28.07B	22.03B	14.11B
Gross Profit	12.21B	12.15B	11.63B	11.16B	9.83B	6.06B
EBITDA	5.90B	5.84B	5.67B	5.56B	5.06B	2.53B
Net Income	4.55B	4.47B	3.92B	3.91B	3.27B	1.43B
Balance Sheet
Total Assets	0.00	34.35B	30.00B	25.63B	22.02B	18.97B
Cash, Cash Equivalents and Short-Term Investments	0.00	5.15B	4.92B	3.98B	1.17B	1.74B
Total Debt	0.00	166.17M	253.62M	305.46M	317.33M	353.50M
Total Liabilities	-28.45B	5.80B	5.73B	5.12B	5.26B	5.30B
Stockholders Equity	28.45B	28.45B	24.17B	20.37B	16.57B	13.44B
Cash Flow
Free Cash Flow	0.00	97.50M	782.65M	2.79B	-474.55M	1.10B
Operating Cash Flow	0.00	3.87B	3.40B	3.41B	328.94M	1.89B
Investing Cash Flow	0.00	-3.38B	-2.28B	-471.61M	-761.01M	-687.39M
Financing Cash Flow	0.00	-273.28M	-173.72M	-152.92M	-147.08M	-3.79B

Timken India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3069.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TIMKEN, the sentiment is Negative. The current price of 3069.5 is above the 20-day moving average (MA) of 3034.15, above the 50-day MA of 3065.07, and above the 200-day MA of 3013.24, indicating a bearish trend. The MACD of -17.68 indicates Positive momentum. The RSI at 38.95 is Neutral, neither overbought nor oversold. The STOCH value of 37.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TIMKEN.

Timken India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹285.96B	46.66	―	0.65%	7.34%	2.27%
TRITURBINE	68 Neutral	₹164.73B	48.16	―	0.75%	3.49%	8.54%
ZFCVINDIA	68 Neutral	₹269.91B	55.90	―	0.13%	4.02%	17.88%
TIMKEN	66 Neutral	₹221.71B	48.75	―	1.18%	4.81%	15.08%
SUNDRMFAST	66 Neutral	₹195.25B	35.24	―	0.84%	3.59%	1.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹90.25B	16.82	―	0.39%	6.65%	-4.29%

Timken India Limited Corporate Events

Timken India Disputes Tax Department’s Rs 74.77 Crore Demand for FY 2022-23

Timken India Limited has disclosed that the Income Tax Department’s Assessment Unit has issued an order for the assessment year 2022-23, disputing the company’s transfer pricing methodology for its distribution segment transactions with associated enterprises and recalculating its income higher by Rs 89.08 crore compared with the income declared in its return. Based on this reassessment, the authorities have raised a demand of Rs 74.77 crore, including interest, but the company maintains that the order and demand notice are erroneous and unsustainable, and plans to appeal before the appropriate authority while stating that it does not foresee any immediate financial or operational impact from the tax claim at this stage.

Timken India Announces Senior Management Change

Timken India Limited has announced a change in its senior management with the retirement of Mr. Aditya Roy, General Manager of Sales, effective at the close of business on October 31, 2025. This transition marks a significant shift in the company’s leadership structure, potentially impacting its sales strategies and stakeholder relationships as it navigates the evolving industrial market landscape.