Shares of Timken India have given exceptional returns to its investors in the past 10 years. The stock has jumped nearly 1500 percent in the past decade from around ₹170 in 2013 to the current price of ₹2,753.
An investment of ₹10,000 in the stock in 2013 would have turned into around ₹1.6 lakh now.
In the last 5 years as well, the stock has given multibagger returns, rallying 289 percent from around ₹705 in March 2018. Meanwhile, from its COVID-low of ₹639.05, hit in March 2020, the stock has jumped 330 percent.
In the last one year, the stock has advanced 26 percent, however, since hitting its record high of ₹3,760.80, in November last year, the stock has been in a correction mode, down nearly 27 percent.
The stock hit its record high on November 21, 2022, after it announced the set up of a new manufacturing facility in Bharuch.
In 2023 YTD, the stock has fallen 11 percent. It has lost 6 percent in March following a 5.6 percent decline in Feb. It was flat in Jan.
Before hitting its record high, the stock had given 5 straight months of positive returns between May and September, rising 55 percent in this period. However, it was down around 2 percent in October 2022.
Timken India Limited manufactures and distributes tapered roller bearings, other roller bearings, components, and accessories for the automotive sector and railway industry in India, the United States, and internationally. The company was formerly known as Tata Timken Limited and changed its name to Timken India Limited in July 1999. The company was incorporated in 1987 and is based in Bengaluru, India. Timken India Limited is a subsidiary of Timken Singapore PTE Limited.
Last year, the company said that a new manufacturing facility will be set up at Bharuch, Gujarat, to manufacture spherical roller bearings (SRB) and cylindrical roller bearings (CRB) and components thereof.
The company already has a manufacturing plant at Bharuch, Gujarat, wherein primarily tapered roller bearings (TRB) and its components are manufactured.
According to the firm, the new facility will incur a cost of ₹600 crore, which will be funded by internal accruals. The company will target both domestic and International markets including the US and Europe.
In the December quarter, the company posted only a 1 percent YoY rise in the net profit at ₹70.60 crore versus ₹69.8 crore in the year-ago period.
Its revenue from operations stood at ₹609.4 crore in the December 2022 quarter, up 19.5 percent from ₹510 crore in the same quarter the previous year.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.