Shares of Timken India rose over 9% per cent in early trade today after the bearings manufacturer said it would set up a new manufacturing facility at Bharuch, Gujarat to manufacture spherical roller bearings (SRB) and cylindrical roller bearings (CRB) and components. Buoyed by the announcement, Timken stock rose up to 9.57% to Rs 3,210 against the previous close of Rs 2929.40 on BSE.
Total 0.21 lakh shares of the firm changed hands amounting to a turnover of Rs 6.48 crore on BSE. Market cap of Timken India rose to Rs 23,865 crore.
Timken India shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 63.79% in a year and risen 60.66% since the beginning of this year. In a week, the stock has gained 13.19%.
On NSE, shares of Timken rose 9.96% to Rs 3212.90 against the previous close of Rs 2921.70. Market cap of the firm rose to Rs 23,868.78 crore. Total 5.40 lakh shares of the firm changed hands amounting to a turnover of Rs 168.58 crore on NSE.
The firm already has a manufacturing plant at Bharuch, wherein primarily tapered roller bearings and its components are manufactured.
“At the same premises wherein existing plant is situated, new facility will be set up to manufacture SRB and CRB and components thereof which will enhance manufacturing capacity of the Company,” the firm said in a communication to BSE.
Setting up of the new plant will entail an investment of Rs 600 crore. The expected starting date for commercial production is January 2025.
“The company at present does not manufacture SRB and CRB in India. SRB and CRB are mainly imported from Timken group companies across world and sold in India. The company believes that SRB and CRB overall have good market in India and outside India,” the firm said adding that the target market of the new plant will be domestic as well as international market including the US and Europe.
Timken India Limited is engaged in the manufacture of bearings, gears, gearing, and driving elements. The company has one primary segment such as bearings and allied goods and services for the automotive sector and the railway industry. It is into manufacturing, distributing, and sale of anti-friction bearings primarily tapered roller bearings, other roller bearings, components, accessories, and mechanical power transmission products for the diverse customer base.
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