Shares of Timken India Ltd. rose as much as 11.58% in trade on Thursday, the most since Nov. 17, 2022.
The stock movement was triggered after the ball and bearing manufacturing company announced their growth plans over the next three to five years in a conference call.
The stock trades at 3.7 times the 30-day average, with a return potential implying an upside of 6.3% over the next 12 months.
Key Highlights From Conference Call
The key highlights include the company's investment of Rs 600 crore over the next 24 months to expand its addressable market size; large tenders from Indian railways; and a cyclical uptick in CV volumes.
Timken also said that the continuing shift of production lines by the parent company indicates a foray into new verticals like defense and aerospace, food and beverages, and medical equipment exports in the future.
Analyst Recommendations
According to a note by JM Financial, "Timken India is poised to benefit from macro tailwinds in the bearings industry, such as the shift of manufacturing facilities to India."
The outlook for exports remains uncertain in the near term as the order book remains healthy, but growth from Europe has slowed down. We maintain 'BUY' with a revised target price of Rs 3,700, based on 45x FY25E EPS.JM Financial Note
Around 44% of analysts changed their price targets on the stock over the past month. Of the seven analysts tracking the company, five maintain 'buy' and one suggests 'hold,' and one analyst recommends to 'sell' the stock, according to Bloomberg, exchanges and brokerage reports
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