Timex Group (500414)
Fast GrowerFairStock Score: 49/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹161.4 |
| Market Cap | ₹1,703.46 Cr |
| P/E Ratio | 48.52 |
| ROCE | 42.56% |
| ROE | 64.8% |
| Dividend Yield | 0% |
| Profit Growth | 164.43% |
| Debt/Equity | — |
| Sales Growth | 25.71% |
| 52-Week Range | ₹237.2 — ₹421 |
| Sector | Consumer Durables |
| Book Value | ₹9.19 |
Strengths
- Strong growth: sales up 25.71% and profit up 164.43%.
- High profitability ratios: ROE 64.80% and ROCE 42.56%.
- PEG of 0.51 suggests reasonable price relative to growth if sustained.
- Piotroski F-Score of 7/9 indicates decent fundamentals.
Concerns
- Expensive on earnings and book: P/E 48.52 and P/B 17.56, with no margin of safety.
- Latest quarter net margin only about 2% (₹3 Cr profit on ₹151 Cr sales).
- Trades below 52-week low (₹237.20) while 52-week high is ₹421.00—a red flag.
- Zero dividend yield and promoter holding not disclosed; debt/equity not provided.
AI Analysis
Let me examine Timex Group the way I would any business. At ₹161.40, the market cap is ₹1,703 Cr, or 48.5 times trailing earnings. Book value is just ₹9.19, so the P/B is 17.6. That is a rich price for a company selling gems, jewellery, and watches—a discretionary business with no obvious durable moat in these numbers. Graham would say the margin of safety is thin. The returns are exceptional: ROE 64.8%, ROCE 42.6%, sales growth 25.7%, profit growth 164.4%. But I am cautious when profits grow from a low base. The latest quarter shows ₹151 Cr in sales but only ₹3 Cr in net profit—a 2% margin. That is not a wide-moat earning stream. The Piotroski F-score of 7/9 is good, and the PEG of 0.51 suggests the market has not priced in continued growth. But a PEG built on a 164% profit jump is unreliable. I also see the stock trading below its stated 52-week range of ₹237.20 to ₹421.00. That is a serious warning. Either the data is outdated or the market is revolting against a valuation that had carried too far. There is zero dividend yield, so the investor depends entirely on price appreciation. No promoter holding is disclosed, so I cannot verify insider alignment. Debt/equity is not available, and with such a thin book, high ROE can be a leverage illusion. This is a fast grower, not a compounder I can sleep on. I would wait for a much lower price or proof that margins are expanding sustainably.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer