Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Timken India - Q2FY21 Company Update - ICICI Direct

Posted On: 2020-11-27 01:08:26 (Time Zone: Arizona, USA)

Timken India reported subdued Q2FY21 numbers that were broadly in line with our estimates. Revenue for the quarter came in at Rs. 392.23 crore, down 2.2% YoY (vs. I-direct estimate of Rs. 400 crore). Slower recovery in CV & other industrial sectors impacted Timken's performance compared to peers. Gross margins contracted ~190 bps YoY. EBIDTA margin was at 21.1% vs. 22.4% YoY. However, it is important to note that Timken posted one of its highest margins in Q2FY20. Absolute EBIDTA came in at Rs. 82.7 crore, down 7.8% YoY (I-direct estimate of Rs. 89.5 crore). Employee cost declined 2.9% YoY to Rs. 30.3 crore. Other expenses declined 5.6% to Rs. 64.2 crore. Tracking its operating performance, Timken ended the quarter with a PAT of Rs. 49.9 crore. Other income came in at Rs. 2.2 crore, diving 65% YoY. Other income declined on account of reduced cash balance, which was used to pay out dividend in June at Rs. 50 per share. Timken generated CFO of Rs. 101.3 crore during H1FY21 vs. Rs. 168.3 crore in H1FY20.

Valuation & Outlook

Amid a challenging environment, Timken has managed to sustain its operating margins albeit on a lower topline. MNC status, debt free balance sheet & high return ratios bode well for the company amid uncertain times. However, the recent run up in Timken's stock price has made valuations too expensive for our comfort. Thus, taking into consideration all the above factors, we roll over and introduce FY23E. We pencil in revenue, EBIDTA and PAT CAGR of 5%, 5% & 2.6%, respectively, in FY20E-23E. We value Timken at 35x FY23EPS to arrive at a target price of Rs. 1235/share. We revise our rating on the stock from BUY to HOLD.

For details, click on the link below:

Shares of TIMKEN INDIA LTD. was last trading in BSE at Rs.1207.75 as compared to the previous close of Rs. 1174.7. The total number of shares traded during the day was 1779 in over 455 trades.

The stock hit an intraday high of Rs. 1213.85 and intraday low of 1160.35. The net turnover during the day was Rs. 2132187.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Cyient - 'Persistent' in the making! - ICICI Securities

Balkrishna Industries - Industry exports growth continues to shine - ICICI Securities

Kajaria Ceramics - Impressive beat; rerating to continue - ICICI Securities

Jindal Steel & Power - Realisation driven earnings boost fails to improve risk reward - ICICI Securities

Asian Paints - Seemingly a beat in 3Q, however, flat revenues in 9MFY21 is what we should focus on - ICICI Securities

Westlife Development - Weak dine-in continues to be a drag - ICICI Securities

Bandhan Bank - Superior operating metrics can absorb interim shocks - ICICI Securities

Bajaj Auto - Higher exports, premium share boost margins - ICICI Securities

Hindustan Zinc - Valuation support dims - ICICI Securities

Havells India - Turnaround in Lloyd should lead to multiple expansion - ICICI Securities

Q3FY21 Result update - HDFC AMC - ICICI Direct

Q3FY21 Result update - Federal Bank - ICICI Direct

Q3FY21 Result update - Bandhan Bank - ICICI Direct

Q3FY21 Result update - Kajaria Ceramics - ICICI Direct

Biocon - Q3FY21 First Cut - ICICI Direct

MCX - Q3FY21 First Cut - ICICI Direct

Q3FY21 Result update - Sagar Cements - ICICI Direct

Q3FY21 Result update - Hindustan Zinc - ICICI Direct

Q3FY21 Result update - Havells India - ICICI Direct

IPO Review - Home First Finance - ICICI Direct

ADD on Bajaj Finance - Priced to perfection - HDFC Securities

Maintain BUY on IRB Infra - Smart recovery - Q3FY21 - HDFC Securities

Maintain BUY on Federal Bank - Sustained improvement in key metrics - HDFC Securities

Maintain ADD on L&T Infotech - Leadership continues - HDFC Securities

Maintain REDUCE on L&T Technology Services - Trajectory improving, but priced in - HDFC Securities

Tata Communications - Transition hiccups? - ICICI Securities

Federal Bank - Steady performance in most business metrics; collections back at pre-covid level - ICICI Securities

L&T Technology Services - Large deal wins are more than priced-in! - ICICI Securities

Newgen Software Technologies - Incremental growth hinges on travel - ICICI Securities

Larsen & Toubro Infotech - How high is high? - ICICI Securities

CEAT - Volume growth, mix helps sustain margins - ICICI Securities

ICICI Lombard General Insurance Company - Health segment faces short-term challenges; long-term fundamentals remain intact - ICICI Securities

Q3FY21 Result update - Rallis India - ICICI Direct

Q3FY21 Result update - Alembic Pharma - ICICI Direct

Quant Pick - Bosch Limited - ICICI Direct

Federal Bank - Q3FY21 First Cut - ICICI Direct

Hindustan Zinc - Q3FY21 First Cut - ICICI Direct

HDFC AMC - Q3FY21 First Cut - ICICI Direct

Phillips Carbon Black - Q3FY21 First Cut - ICICI Direct

Q3FY21 Result update - VST Industries - ICICI Direct

Q3FY21 Result update - Bajaj Finance - ICICI Direct

Q3FY21 Result update - Larsen & Toubro Infotech - ICICI Direct

Q3FY21 Result update - Tata Communication - ICICI Direct

Q3FY21 Result update - Sterlite Technologies - ICICI Direct

Sagar Cements - Q3FY21 First Cut - ICICI Direct

Bajaj Finance - Q3 FY21 First Take - YES Securities

Home First Finance Limited - IPO - YES Securities

Maintain BUY on Gateway Distriparks - An all-round results beat, encouraging outlook - HDFC Securities

REDUCE on ICICI Lombard General Insurance Company Ltd - COR continues to improve - HDFC Securities

Maintain BUY on IRB Infra - Smart recovery - HDFC Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020