TIMKEN - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | TIMKEN | Market Cap | 23,942 Cr. | Current Price | 3,192 ₹ | High / Low | 3,610 ₹ |
| Stock P/E | 55.6 | Book Value | 368 ₹ | Dividend Yield | 1.13 % | ROCE | 20.9 % |
| ROE | 17.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,224 ₹ | DMA 200 | 3,118 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.43 % | PAT Qtr | 49.8 Cr. | PAT Prev Qtr | 89.5 Cr. |
| RSI | 44.4 | MACD | 48.2 | Volume | 26,936 | Avg Vol 1Wk | 1,27,725 |
| Low price | 2,200 ₹ | High price | 3,610 ₹ | PEG Ratio | 5.12 | Debt to equity | 0.01 |
| 52w Index | 70.3 % | Qtr Profit Var | -32.9 % | EPS | 57.2 ₹ | Industry PE | 51.1 |
📊 TIMKEN shows moderate potential for swing trading. The fundamentals are strong with EPS (57.2 ₹), ROE (17%), and ROCE (20.9%). Debt-to-equity is very low (0.01), reflecting financial stability. Technical indicators are mixed: RSI at 44.4 suggests neutral momentum, while MACD (48.2) indicates bullish crossover. The current price (3,192 ₹) is slightly below the 50 DMA (3,224 ₹) but above the 200 DMA (3,118 ₹), showing consolidation near support. However, valuation is stretched with a P/E of 55.6 compared to industry PE of 51.1, and quarterly PAT declined from 89.5 Cr. to 49.8 Cr.
✅ Optimal Entry Price: Around 3,150–3,200 ₹ (near 200 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 3,300–3,350 ₹ (short-term resistance) unless strong breakout occurs.
🌟 Positive
- Strong EPS of 57.2 ₹ indicates profitability.
- ROCE (20.9%) and ROE (17%) reflect efficient capital use.
- Low debt-to-equity ratio (0.01) shows financial strength.
- MACD suggests bullish momentum in the short term.
⚠️ Limitation
- High P/E (55.6) makes the stock expensive compared to peers.
- Quarterly PAT declined significantly (-32.9%).
- RSI at 44.4 indicates lack of strong momentum.
- Trading volume is relatively low compared to average, reducing liquidity for quick trades.
📰 Company Negative News
- Quarterly PAT dropped from 89.5 Cr. to 49.8 Cr.
- FII holdings decreased by -0.45%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 0.43%, reflecting domestic institutional support.
- Strong fundamentals with high ROCE and ROE.
- Stock has delivered strong 52-week performance (70.3%).
🏭 Industry
- Industry PE is 51.1, slightly lower than TIMKEN’s 55.6, suggesting mild overvaluation.
- Engineering and industrial bearings sector remains in demand, supported by manufacturing and infrastructure growth.
🔎 Conclusion
TIMKEN is a moderately strong candidate for swing trading. Fundamentals are solid, and technicals show consolidation with potential for short-term upside. Traders may enter near 3,150–3,200 ₹ with a short-term target of 3,300–3,350 ₹. Risk management is advised due to high valuation and recent earnings decline, but strong sector outlook and low debt provide confidence for potential rebound.