⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

TIMKEN - Swing Trade Analysis with AI Signals

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Rating: 3.7

Last Updated Time : 19 Jun 26, 11:29 am

Swing Trade Rating: 3.7

Stock Code TIMKEN Market Cap 26,895 Cr. Current Price 3,574 ₹ High / Low 3,775 ₹
Stock P/E 67.5 Book Value 395 ₹ Dividend Yield 1.01 % ROCE 18.3 %
ROE 13.7 % Face Value 10.0 ₹ DMA 50 3,516 ₹ DMA 200 3,294 ₹
Chg in FII Hold 0.02 % Chg in DII Hold 0.48 % PAT Qtr 155 Cr. PAT Prev Qtr 49.8 Cr.
RSI 51.1 MACD 10.2 Volume 28,690 Avg Vol 1Wk 61,895
Low price 2,800 ₹ High price 3,775 ₹ PEG Ratio 99.3 Debt to equity 0.00
52w Index 79.4 % Qtr Profit Var -17.2 % EPS 53.0 ₹ Industry PE 62.2

📈 Optimal Entry Price: 3,520–3,550 ₹ (near 50 DMA support)

📉 Exit Strategy: If already holding, consider exiting near 3,700–3,750 ₹ (resistance zone) or cut losses if price falls below 3,500 ₹.

Positive

  • 📊 EPS at 53.0 ₹ supports valuation strength.
  • 📈 PAT improved significantly (49.8 Cr. → 155 Cr.), showing earnings recovery.
  • 💰 Dividend yield of 1.01% provides shareholder returns.
  • 📉 Debt-to-equity ratio at 0.00, reflecting strong financial stability.
  • 📊 RSI at 51.1 indicates balanced momentum.
  • 📈 MACD positive at 10.2, confirming bullish crossover.
  • 📊 Institutional support with FII (+0.02%) and DII (+0.48%) holdings increased.

Limitation

  • ⚠️ High P/E ratio (67.5) compared to industry PE (62.2), suggesting overvaluation.
  • 📉 PEG ratio at 99.3 indicates expensive valuation relative to growth.
  • 📊 ROCE (18.3%) and ROE (13.7%) are moderate relative to valuation premium.
  • 📉 Trading volume (28,690) lower than weekly average (61,895), showing reduced liquidity.
  • ⚠️ Quarterly profit variation at -17.2% highlights earnings volatility.

Company Negative News

  • ❌ Valuation stretched compared to peers.
  • ⚠️ Profit variation negative despite overall PAT improvement.
  • 📉 Liquidity concerns with lower trading volume.

Company Positive News

  • ✅ PAT recovery quarter-on-quarter shows operational strength.
  • 📈 Institutional investors increasing stake, boosting confidence.
  • 📊 Strong 52-week performance (+79.4%).

Industry

  • 🌐 Industry PE at 62.2 is slightly lower than TIMKEN’s PE (67.5), suggesting premium valuation.
  • 📊 Engineering and industrial products sector remains strong with steady demand.

Conclusion

⚖️ TIMKEN is a fair swing trade candidate with strong fundamentals and bullish technicals, but high valuation and earnings volatility warrant caution. Entry near 3,520–3,550 ₹ offers favorable risk-reward, with exit near 3,700–3,750 ₹. Stop-loss should be maintained around 3,500 ₹ to manage downside risk.

This analysis frames TIMKEN as a moderate swing candidate with valuation risks but strong fundamentals. Would you like me to extend this into a sector overlay comparison with peers like SKF India and Schaeffler India to benchmark its swing potential?

Technical Analysis
Fundamental Analysis

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