TIMKEN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | TIMKEN | Market Cap | 24,439 Cr. | Current Price | 3,251 ₹ | High / Low | 3,576 ₹ |
| Stock P/E | 53.7 | Book Value | 368 ₹ | Dividend Yield | 1.11 % | ROCE | 20.9 % |
| ROE | 17.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,043 ₹ | DMA 200 | 3,060 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.43 % | PAT Qtr | 89.5 Cr. | PAT Prev Qtr | 104 Cr. |
| RSI | 68.8 | MACD | 25.7 | Volume | 34,507 | Avg Vol 1Wk | 85,254 |
| Low price | 2,200 ₹ | High price | 3,576 ₹ | PEG Ratio | 4.94 | Debt to equity | 0.01 |
| 52w Index | 76.4 % | Qtr Profit Var | -0.53 % | EPS | 60.5 ₹ | Industry PE | 54.0 |
📊 TIMKEN shows strong fundamentals with high ROCE/ROE, low debt, and healthy EPS. The stock trades close to its 52-week high with bullish technical indicators, but premium valuation, declining FII interest, and reduced quarterly profits limit upside. It is a moderately good candidate for swing trading with momentum-driven potential.
✅ Optimal Entry Price: Around 3,150–3,200 ₹ (near support above 50 DMA)
🚪 Exit Strategy: If already holding, consider exiting near 3,450–3,500 ₹ (resistance zone close to 52-week high of 3,576 ₹).
Positive
- ROCE (20.9%) and ROE (17.0%) reflect strong efficiency.
- EPS of 60.5 ₹ indicates solid earnings power.
- Low debt-to-equity (0.01) ensures financial stability.
- Dividend yield of 1.11% adds investor appeal.
- Stock trading above both 50 DMA (3,043 ₹) and 200 DMA (3,060 ₹), showing technical strength.
- MACD positive (25.7) signals bullish momentum.
Limitation
- High P/E (53.7) compared to industry PE (54.0), suggesting premium valuation.
- PEG ratio of 4.94 indicates weak growth relative to valuation.
- Quarterly PAT declined (89.5 Cr vs 104 Cr), showing inconsistency.
- RSI at 68.8 is near overbought territory, limiting upside.
- Trading volume lower than weekly average, reflecting reduced participation.
Company Negative News
- Decline in FII holdings (-0.45%) shows reduced foreign investor confidence.
- Quarterly profit slightly contracted, raising caution.
Company Positive News
- DII holdings increased (+0.43%), reflecting domestic institutional support.
- Strong fundamentals with consistent efficiency ratios.
- Stock price momentum remains positive near 52-week highs.
Industry
- Industry PE at 54.0 is similar to TIMKEN’s valuation, suggesting sector-wide premium pricing.
- Bearings and industrial engineering sector benefits from infrastructure and manufacturing growth.
Conclusion
⚖️ TIMKEN offers moderate swing trading potential with entry near 3,150–3,200 ₹ and exit near 3,450–3,500 ₹. While fundamentals are strong and momentum is positive, premium valuation and declining FII interest warrant caution. Best suited for short-term momentum traders rather than long-term investors.