ICICI Direct is bullish on Timken India has recommended buy rating on the stock with a target price of Rs 835 in its research report dated May 23, 2018.
ICICI Direct's research report on Timken India
Timken India reported strong operational numbers in Q4FY18. Revenues came in strong at | 345.4 crore, up 32.6% YoY. We had estimated 15% topline growth at | 300 crore Absolute EBITDA increased 22.4% YoY to | 46 crore. EBITDA margins came in at 13.3% vs. 14.4% YoY. Lower EBITDA margins were primarily due to a decline in gross margins (dropped 210 bps YoY). We expected EBITDA margins of 15.4% for the quarter
Outlook
We continue to value the company at 40x FY20E EPS of | 20.9 and arrive at a target price of | 835. The stock has witnessed a significant correction over the last few days from ~| 1000 per share to | 690-710 per share. Accordingly, we upgrade the stock from HOLD to BUY recommendation.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.