Buoyed by an announcement the shares of Timken India rose 19.31% and were trading at ₹ 3486.00 apiece at 01:47 PM on Thursday.
Timken India is a part of the global Timken group. It manufactures, distributes and sells anti-friction bearings, components, accessories and mechanical power transmission products for the customer base across different sectors. In addition, it provides maintenance contracts, refurbishment services and industrial services.
The bearings manufacturer said that it would set up a new manufacturing facility at Bharuch, Gujarat to manufacture spherical roller bearings (SRB) and cylindrical roller bearings (CRB) and components. The company already has a manufacturing plant at Bharuch wherein primarily Tapered Roller Bearings (‘TRB’) and its components are manufactured.
It said that it expects an investment of approximately ₹ 600 crores and plans to start commercial production by January 2025. This amount will be sourced through internal accruals.
Timken India added that it does not manufacture SRB and CRB in India, at present. These are mainly imported from Timken group companies across the world and sold in India. It believes that SRB and CRB overall have a good market in India and outside India. It added that it targets the domestic market in India as well as international markets including US and Europe.
18.57 lakh shares changed hands on the National Stock Exchange (NSE) by 02:00 PM. The company’s market capitalization rose to ₹ 21,977 crores on Thursday. Its shares were trading at a price-to-equity ratio (P/E) of 54.01, which is higher than the industry P/E of 40.30. It has an ideal return on equity of 21.80% and an ideal debt-to-equity ratio of 0.01.
Written by Simran Bafna
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