Tuesday, October 19, 2010


Timex Group India  recommended as a BUY ON  DECLINE ,when it was at Rs.46/-. Currently it is trading @ Rs.42/- ,a dip of 10% .One may BUY 1/3 of the required quantity at current level.

Old report is re produced below

Timex Group is one of the largest watch makers in the world
Its Indian arm TIMEX GROUP INDIA started its operations
in 1992 in  association with TATA group ,but later part their
ways and now working  independently. For the past many
years company was struggling to exist ,but now it showing
some signs of recovery. Company  wiped off all accumulated
losses and coming back to growth path after changing its entire
strategy. Now company is selling its brands TIMEX,
Etc through retailers and its own show rooms named ‘THE
TIME FACTORY’ .In the beginning of this year  , Mr Kapil
Kapoor from India has appointed as the COO of  Timex
Group’s worldwide operations . He is well experienced and
earlier with Nestle and Bausch & Lomb. After his appointment
as global COO, the Indian arm is enjoying more flexibility and
showing real improvement in all aspects. Now the company is
aggressively chalking out plans to capturing market share and
reducing costs. Currently company concentrating in price range
between Rs 500 and Rs 5,000 and claiming a market share of
21 % in this category. Company is now seriously thinking about
re-positioning its brands in other price category too. There is
also fair chance for brand extension to other lifestyle products
going forward. In first qtr  June 2010 ,sales grew 45 per cent,
while profits grew 107 per cent over the corresponding period.
Company posted a NP of Rs.5 Cr in this qtr where in last
FULL YEAR  it posted Rs.4.6 Cr only .Company having an
equity base close to 10 Cr  ,out of this almost 75% held by the
foreign entity. In order to clean up  the balance sheet ,company
reduced its FV to Rs.1/- and write off the balance earlier.
Considering the renewed interest of the management and
aggressive steps taken in recent past ,it is expected to perform
well going forward. But one should consider the fact that the
share price has run up sharply after the declaration of June
qtr result and now trading around its 52 week high .
One should keep watching and enter in a correction .
Currently it is trading around Rs.46/-


  1. the company is doing good and expansion will help along with festive season.

    Recently company made a statement of moving to high price/margin watches.

    dec qtr will be a trend setter.

  2. Yah company is doing good. But looks like timex is fairly valued at CMP. mcap/sales 3 times fy10. What is ur view VP.



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