Timex Group India Limited - Analysis

Recommendation : SELL
December 16, 2010

Timex Group, as of now, is a debt-free company. It has 12.61 crores of Fixed Assets and 57.54 crores of Working Capital. 

The breakdown percentage of Quarterly Sales is given below. Their Operating Profit Margins have increased in the Septmeber quarter as compared to the same quarter last year.

ROCE for the year ending 6 months in the September quarter is coming around 18% as compared to11% for the same period last year. Cash Conversion Cycle has also improved to 40 days as compared to previous 52 days. 

Despite all these good things about the company, there is one caution. Last year also, around the September quarter, this company was on track. But their later quarters of December and March were bad for this company, which really screwed all the ratios. The Annual breakdown of Sales for March 2010 and March 2009 are given below.

People who wish to buy into this scrip shall wait for December and March quarter. If the same pattern gets repeated this year also, the stock price might fall down and provide buying opportunities.

Overall, Total Assets per Share of this scrip is coming out to be Rs.7. P/E is already above 40. The Current Price of this stock per share is Rs. 40, which makes this scrip quiet costly.

Overall, Equity Section has a SELL recommendation for this stock at this moment. We'll stay away from this scrip.  

Disclaimer : Equity Section doesn't hold this stock.