Target: ₹3,665
CMP: ₹3,154.05
Timken India manufactures and distributes anti-friction bearings, components and mechanical power transmission products. It also offers maintenance, refurbishment, and industrial services across various sectors.
Timken’s Q3-FY26 revenue from operations grew 14 per cent yoy to ₹764.3 crore. All business segments grew during the quarter, with the Process segment showing the strongest momentum, jumping 24 per cent yoy to ₹167 crore.
Though impacted by temporary cost pressures and the initial ramp-up phase of the Bharuch plant, Timken continues to demonstrate underlying demand strength across key industrial segments.
We expect revenues to grow at 15 per cent CAGR, driven by demand improvement from CV and rail segments and improving utilization at the new SRB/CRB capacity and potential upside from favorable global trade developments that enhance export opportunities. Margins are expected to expand from 17.8 per cent in FY26E to 19.9 per cent in FY28E as mix normalises from current unfavorable mix and Bharuch ramp-up costs taper off and operating leverage improves with rising domestic and export volumes.
Resultantly, earnings are projected to grow at a strong 22 per cent CAGR over FY26–28E, reflecting both topline momentum and margin recovery. Hence, we value the stock at 44X on FY28 EPS and upgrade the stock from Sell to Accumulate rating with a Target price of ₹3,665/Share.
Published on February 20, 2026