Timken India rises as brokerage raises PT on expansion plans

JM Financial

01/12/2022 09:05

** Shares of Indian bearings manufacturer Timken India Ltd
 TIMK.NS  rise as much as 11.6% to 3,689 rupees, their sharpest
intraday pct gain since Nov 17
    ** The co had announced plans in its conference call on Nov
24 to invest 6 bln rupees ($73.82 mln) over the next two years
to expand its addressable market size 
    ** JM Financial on Wednesday reiterated a "buy" rating on
the co's stock and raised PT to 3,700 rupees from 3,200, citing
growth prospects due to the company's plans to expand its market
    ** The brokerage has forecast 24% earnings Compound Annual
Growth Rate over FY22-25E, despite a high base of 25% CAGR in
the past five years
    ** More than 830,000 shares change hands, 2.9x the 30-day
avg of 290,360 shares
    ** Four of five analysts covering the stock have "buy" or
"strong buy" rating, while one rates it at "strong sell"; median
PT is 3,670 rupees, 9.92% premium to the last close - Refinitiv
data
    ** Timken stock up 66.3% YTD, as of last close
    ($1 = 81.2775 Indian rupees)
 (Reporting by Anisha Ajith in Bengaluru)
 ((anisha.ajith@thomsonreuters.com))