TIMKEN - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | TIMKEN | Market Cap | 26,129 Cr. | Current Price | 3,475 ₹ | High / Low | 3,680 ₹ |
| Stock P/E | 60.7 | Book Value | 368 ₹ | Dividend Yield | 1.04 % | ROCE | 20.9 % |
| ROE | 17.0 % | Face Value | 10.0 ₹ | DMA 50 | 3,370 ₹ | DMA 200 | 3,190 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | 0.48 % | PAT Qtr | 49.8 Cr. | PAT Prev Qtr | 89.5 Cr. |
| RSI | 52.4 | MACD | 43.6 | Volume | 52,351 | Avg Vol 1Wk | 45,598 |
| Low price | 2,544 ₹ | High price | 3,680 ₹ | PEG Ratio | 5.59 | Debt to equity | 0.01 |
| 52w Index | 82.0 % | Qtr Profit Var | -32.9 % | EPS | 57.2 ₹ | Industry PE | 48.8 |
TIMKEN shows decent potential for swing trading. The current price of ₹3,475 is above both the 50 DMA (₹3,370) and 200 DMA (₹3,190), indicating bullish momentum. RSI at 52.4 is neutral, while MACD at 43.6 signals positive momentum. Fundamentals are strong with EPS of ₹57.2, ROCE at 20.9%, ROE at 17%, and very low debt-to-equity (0.01). However, the P/E ratio (60.7) is higher than the industry PE (48.8), suggesting overvaluation. Quarterly PAT fell from ₹89.5 Cr. to ₹49.8 Cr. (-32.9%), which tempers enthusiasm.
💡 Optimal Entry Price: Around ₹3,400–₹3,450 near 50 DMA support.
💡 Exit Strategy (if already holding): Consider exiting near ₹3,600–₹3,650 resistance unless momentum strengthens further.
✅ Positive
- Strong EPS (₹57.2) and profitability.
- Healthy ROCE (20.9%) and ROE (17%) show efficiency.
- Low debt-to-equity (0.01) ensures financial stability.
- Trading above both 50 DMA and 200 DMA, confirming bullish trend.
⚠️ Limitation
- High P/E ratio (60.7) compared to industry PE (48.8).
- Quarterly PAT declined significantly (-32.9%).
- PEG ratio of 5.59 indicates expensive valuation relative to growth.
📉 Company Negative News
- Profit dropped from ₹89.5 Cr. to ₹49.8 Cr. in the latest quarter.
- Valuation premium compared to industry peers.
📈 Company Positive News
- DII holdings increased (+0.48%), showing domestic institutional confidence.
- FII holdings also rose slightly (+0.02%).
- Strong 52-week performance (+82%).
🏭 Industry
- Industry PE at 48.8 is lower than TIMKEN’s 60.7, highlighting valuation premium.
- Sector remains strong with steady demand in industrial and engineering products.
🔎 Conclusion
TIMKEN is a fair candidate for swing trading with entry near ₹3,400–₹3,450 and exit around ₹3,600–₹3,650. Strong fundamentals and bullish technicals support upside potential, but high valuation and recent profit decline warrant caution. Traders should apply strict stop-loss strategies below ₹3,350 to manage risk.