TIMEX GROUP INDIA - ACCUMULATE ON DECLINE

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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,

MARK ECKO,NAUTICA, SALVATORE FERRAGAMO .

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/-