Timex Watches zoomed 17% to Rs 12.60 today on reports that the US parent is looking at the Indian affiliate as an outsourcing hub for global markets.
The scrip jumped as much as 20% to Rs 12.90, earlier in the day. Around 2.5 lakh Timex Watches shares were traded on BSE thus far. The stock has been on the up over the last few sessions in tandem with the broad gains in the market. From Rs 8.25 on 25 April 2003, the scrip has leaped up 52.7% to the current Rs 12.60.
The scrip made sterling gains today on reports that the US parent is looking at the Indian affiliate as an outsourcing hub for global markets. Timex Watches currently exports to overseas markets like the US, South East Asia and the Middle East.
Recently, the US parent Timex Corporation USA, which holds an 83% stake in Timex Watches, decided to pump in Rs 25 crore in the company in the form of an issue of non-cumulative redeemable non-convertible preference shares. The new investment will be used to restructure Timex's supply chain and other expansion plans.
As per a study conducted by KSA-Technopak, Timex Watches has recorded a market share of 22% in 2002, against 15% in the previous year.
For the third quarter ended 31 December 2002, Timex Watches recorded a 40% jump in sales to Rs 23.47 crore from Rs 16.80 crore for the corresponding period of the previous year. Net loss stood at Rs 4.32 crore from Rs 4.85 crore in the previous corresponding quarter. The company has a huge equity of Rs 100.95 crore.
Meanwhile, Timex Watches will be launching four international brands -- Reebok, Timberland, FCUK and Opex in the current year. While Opex and FCUK will be priced between Rs 5,000-10,000, Reebok will be priced at Rs 3,500-10,000.
