TIMKEN - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.3

📊 TIMKEN shows strong technical momentum and solid fundamentals, making it a good swing trade candidate. Optimal entry is ₹3,030–₹3,050. If already held, consider exiting near ₹3,150–₹3,200.

📈 Positive

• ROCE (20.9%) and ROE (17.0%) reflect excellent capital efficiency.
• Debt-to-equity ratio (0.01) indicates near-zero leverage and strong financial health.
• MACD (18.0) is strongly positive, suggesting bullish momentum.
• Volume more than double the 1-week average signals strong market interest.
• Trading above 50-DMA and near 200-DMA supports short-term strength.

⚠️ Limitation

• High PEG ratio (4.64) implies expensive valuation relative to growth.
• P/E (50.4) matches industry average but still reflects premium pricing.
• RSI (54.5) is neutral, offering limited oversold advantage.
• Quarterly PAT dropped from ₹187 Cr. to ₹104 Cr., indicating short-term earnings pressure.

🚫 Company Negative News

• FII holdings declined by 2.05%, showing reduced foreign investor confidence.
• Recent profit decline may reflect margin pressure or cyclical slowdown.

✅ Company Positive News

• DII holdings increased by 2.04%, showing strong domestic institutional support.
• EPS of ₹60.5 and strong ROCE/ROE metrics support long-term growth outlook.
• Company maintains leadership in industrial bearings and motion solutions.

🌐 Industry

• TIMKEN operates in the industrial engineering and manufacturing sector, which benefits from infrastructure and capex cycles.
• Industry P/E of 50.4 reflects high valuation expectations and growth potential.

🧾 Conclusion

• TIMKEN is a strong swing trade candidate with solid fundamentals and technical momentum.
• Optimal entry: ₹3,030–₹3,050 (near support and 50-DMA).
• Exit target: ₹3,150–₹3,200 (near resistance and psychological level).
• Watch for MACD continuation and volume strength for confirmation.

I can chart TIMKEN’s RSI and MACD trends to help you visualize the timing for entry and exit.