Timken India is poised to benefit from macro tailwinds in bearings industry  such as shift of manufacturing facilities to India, foray into new segments and development of new verticals, said JM Financial.

Shares of Timken India climbed 11 per cent in Thursday's trade to snap a three-day losing streak. JM Financial has maintained a buy rating on the stock valuing it at Rs 3,700, based on 45 times FY25E EPS. On Thursday, the scrip rose 10.99 per cent to hit a high of Rs 3,670. JM Financial's target suggests no upside for the stock from here on.

JM Financial said Timken India is poised to benefit from macro tailwinds in bearings industry such as shift of manufacturing facilities to India, foray into new segments (CRB and SRB) and development of new verticals for growth such as defence & aerospace, F&B and medical equipment exports.

It expects the Timken India to gain from a cyclical recovery over FY23-35 in its existing domestic segments i.e. commercial vehicles and railways.

The company recently conducted a conference call to articulate its growth plans over next three to five years.

Key highlights included investment of Rs 600 crore over the next 24 months to expand its addressable market size including CRBs and SRBs (primarily used in mining, paper pulp and wind) with estimated industry size of Rs 3,700 crore.

It suggested that a continued shift of production lines by the parent company can open up new vertical like defence & aerospace, food & beverages and medical equipment exports in future.

It also cited a large tender of 90,000 wagons by Indian Railways, with additional volumes for DFC corridor and high speed rail rolling stock and cyclical uptick in CV volumes.

"Outlook for exports remains uncertain in near term as order book remains healthy, but growth from Europe declined has slowed down," JM Financial said.