Feb'25 View on Timken India Ltd

Timken India Ltd is engaged in the manufacturing, distribution and sale of anti-friction bearings, components, accessories and mechanical power transmission products for the customer base across different sectors. It also provided maintenance contracts and refurbishment services and industrial services. After touching a high above 4,800 the stock has recently made a low near 2,700 and looks now to bounce back above above 3,400 due to following factors • Company remains optimistic about recovery in export truck segment in coming months. • Strong order book in the domestic railway business. • Timken India Q3FY25 EBITDA was 9% below our estimate. • Q3FY25 EBITDA was impacted due to weakness in the export market. • Near term may remain muted, we expect demand trends to pick up from H2FY26E. • We cut FY25-27E EPS estimate by 5-8% on lower revenue/EBITDA margin assumption. • We expect earnings per share (EPS) to grow by 23.6% in FY26E and 25.5% in FY27E.