Now Reading: Timken India Q1 profit beats estimates; broker upgrades to Add
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Timken India Q1 profit beats estimates; broker upgrades to Add
Brokerage firm has upgraded Timken India to ADD from Hold after its Q1FY27 results beat estimates. EBITDA rose 21% year-on-year to Rs 170 crore, 5% above estimates. Sales grew 15% to Rs…
The Story in Brief
Brokerage firm has upgraded Timken India to ADD from Hold after its Q1FY27 results beat estimates. EBITDA rose 21% year-on-year to Rs 170 crore, 5% above estimates. Sales grew 15% to Rs 930 crore, in line with expectations. The EBITDA margin improved 94 basis points to 18.5% on lower raw material costs.
The new Bharuch plant contributed Rs 50 crore revenue in Q1 and is ramping up ahead of schedule. Exports grew 21% driven by strong US demand for taper bearings, which offset weakness in Europe, China and ASEAN. The broker raised its target price to Rs 3,812 from Rs 3,637, valuing the stock at 45 times forward earnings.
The Indian Opinion
The Timken upgrade shows India’s manufacturing story is real for industrial exporters, but it rests heavily on US demand. If tariffs shift or a US slowdown hits, the export cushion could thin. The real test is whether domestic rail and infrastructure orders can match export growth when the US cycle turns. Watch next quarter’s export numbers for early signs.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
