Sushil Finance's report on Timken India"Timken India is the fourth largest manufacturers of bearing in India with an overall market share of 8%, while in the taper roller bearings it has the highest market share of 40%. Higher automation of industry, new additions in wagons & speed upgradation by Railway and CV cycle turnaround will drive the growth for bearing markets and Timken in particular."OUTLOOK & VALUATION"Lack of new entrants will keep the bearing market being shared by the existing MNC players in the organized segment. However, with new products in pipeline & higher focus on services, we expect Timken to gain market share from unorganized segment as well as from other players. At the CMP of Rs 534 the stock is trading at 26.2x its FY17E EPS of Rs 21. Timken India has always traded at rich valuations and we believe higher valuations to sustain for the company. We have valued the company at 32x its FY17E EPS and set a target Price of Rs 670, and recommend BUY on the stock", says Sushil Finance research report.For all recommendations, 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.
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