Timken India Limited (TIMKEN) AI Stock Analysis

• Market Cap: ₹262.67B
• Dividend Yield: 1.18%
• Average Volume (3M): 25.50K
• Price to Earnings (P/E): 103.5
• Beta (1Y): 1.08
• Revenue Growth: 4.81%
• EPS Growth: 15.08%
• Country: IN
• Employees: 1,279
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 7.10
• 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: ₹3,665.00
• Price Target Upside: 19.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 54.36
• Revenue Forecast (FY): ₹34.16B

• Rating: 66 Neutral
• Price Target: ₹3,773.00 ▲(22.92% Upside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

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

Balance sheet strength

Timken India's very low leverage and high equity ratio provide durable financial resilience. With debt-to-equity of 0.01 and an equity ratio of 83.07%, the company has flexibility to fund capital needs, sustain operations through cycles, and invest in product or capacity without meaningful refinancing risk, supporting long-term stability and strategic execution.

Consistent revenue growth

Nearly 10% year-over-year revenue growth signals durable demand across OEM and aftermarket channels. Sustainable top-line expansion supports longer-term investments in capacity, distribution and engineering, helps absorb fixed costs, and underpins the firm's ability to pursue higher-spec product adoption and steady earnings over the next several quarters.

High profitability margins

Robust margins reflect pricing power in engineered bearings and efficient operations. Gross margin above 40% and an EBIT margin of 35.26% give the business a structural cushion against raw-material or energy cost swings, enabling reinvestment in R&D and service capabilities while sustaining attractive returns on equity over multiple quarters.

Negative Factors

Weak free cash flow conversion

Although free cash flow rose 24.57% year-over-year, the FCF-to-net-income ratio of 0.02 shows poor conversion of accounting profits into discretionary cash. This constrains capacity to finance capex, dividends or weather prolonged downturns without tightening working capital or using external funding, limiting financial flexibility.

EBITDA margin pressure

A decline in EBITDA margin to 20.07% suggests emerging pressure on operating profitability, potentially from cost inflation, product-mix shifts, or competitive pricing. If this trend persists, it could erode the company's ability to fund growth initiatives and maintain the high-return profile historically delivered by engineered-bearing products.

Cyclical end-market exposure

Timken India's revenue depends on cyclical sectors—industrial capex, railways and automotive production—making volumes and aftermarket demand sensitive to macro cycles. This structural exposure can drive multi-quarter swings in orders, utilization and margins, increasing execution risk during economic slowdowns or capex pullbacks.

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 makes money primarily by selling bearings and related engineered products to OEMs and industrial customers, and by supplying replacement bearings into the aftermarket (maintenance and repair demand). Key revenue streams typically include: (1) Domestic product sales in India to sectors such as railways, heavy industry, and automotive/industrial equipment manufacturers; (2) Aftermarket sales through industrial distribution and direct customer relationships, where recurring replacement demand can be meaningful because bearings are wear components; (3) Exports of manufactured bearing products to customers outside India, depending on demand and group supply-chain allocations; and (4) Revenue from services and solutions associated with bearings (e.g., application engineering, condition monitoring/reliability support) where offered as part of customer contracts or bundled with product sales. Earnings are influenced by volume demand in end markets (notably industrial capex and rail/auto production), pricing and product mix (higher-spec engineered bearings typically carry higher margins), raw-material and energy costs (especially steel), and the company’s ability to leverage the Timken global brand, technology, and distribution network. Specific details on material partnerships, customer concentration, or segment-level revenue splits are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.93B	31.48B	29.10B	28.07B	22.03B	14.11B
Gross Profit	11.63B	12.15B	11.63B	11.16B	9.83B	6.06B
EBITDA	6.04B	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	33.82B	34.35B	30.00B	25.63B	22.02B	18.97B
Cash, Cash Equivalents and Short-Term Investments	3.57B	5.15B	4.92B	3.98B	1.17B	1.74B
Total Debt	276.13M	166.17M	253.62M	305.46M	317.33M	353.50M
Total Liabilities	6.14B	5.80B	5.73B	5.12B	5.26B	5.30B
Stockholders Equity	27.68B	28.45B	24.17B	20.37B	16.57B	13.44B
Cash Flow
Free Cash Flow	945.08M	97.50M	782.65M	2.79B	-474.55M	1.10B
Operating Cash Flow	2.35B	3.87B	3.40B	3.41B	328.94M	1.89B
Investing Cash Flow	-1.25B	-3.38B	-2.28B	-471.61M	-761.01M	-687.39M
Financing Cash Flow	-2.75B	-273.28M	-173.72M	-152.92M	-147.08M	-3.79B

Timken India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3069.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 3069.5 is below the 20-day moving average (MA) of 3268.66, below the 50-day MA of 3143.68, and below the 200-day MA of 3116.84, indicating a bullish trend. The MACD of 76.28 indicates Negative momentum. The RSI at 63.47 is Neutral, neither overbought nor oversold. The STOCH value of 71.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹317.17B	49.42	―	0.65%	7.34%	2.27%
TRITURBINE	69 Neutral	₹149.54B	46.44	―	0.75%	3.49%	8.54%
ZFCVINDIA	68 Neutral	₹265.26B	50.33	―	0.13%	4.02%	17.88%
TIMKEN	66 Neutral	₹262.67B	103.51	―	1.18%	4.81%	15.08%
SUNDRMFAST	66 Neutral	₹174.48B	37.63	―	0.84%	3.59%	1.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKFINDIA	60 Neutral	₹79.19B	36.90	―	0.39%	6.65%	-4.29%

Timken India Limited Corporate Events

Timken India Seeks Shareholder Nod for Board Changes via E-Voting

Timken India has launched a postal ballot process via remote e-voting to seek shareholder approval for key board changes. The resolutions include the re-appointment of Soumitra Hazra as an independent director and the appointment of Michael DisCenza as a non-executive director, with electronic voting open from 6 March to 4 April 2026 for members on record as of 27 February 2026.

The company has partnered with NSDL to provide the e-voting platform, and detailed instructions and the ballot notice are available on Timken India’s and NSDL’s websites as well as on stock exchange portals. The outcome, to be declared within two working days after voting ends, could influence the company’s governance structure and strategic oversight through the refreshed board composition.

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.