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TIMKEN - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.5

Last Updated Time : 03 May 26, 11:25 am

Technical Rating: 3.5

Stock Code TIMKEN Market Cap 25,791 Cr. Current Price 3,429 ₹ High / Low 3,680 ₹
Stock P/E 59.9 Book Value 368 ₹ Dividend Yield 1.05 % ROCE 20.9 %
ROE 17.0 % Face Value 10.0 ₹ DMA 50 3,366 ₹ DMA 200 3,187 ₹
Chg in FII Hold 0.02 % Chg in DII Hold 0.48 % PAT Qtr 49.8 Cr. PAT Prev Qtr 89.5 Cr.
RSI 49.2 MACD 48.5 Volume 70,595 Avg Vol 1Wk 38,411
Low price 2,431 ₹ High price 3,680 ₹ PEG Ratio 5.51 Debt to equity 0.01
52w Index 79.9 % Qtr Profit Var -32.9 % EPS 57.2 ₹ Industry PE 46.6

📈 Chart & Trend: TIMKEN is trading above both its 50 DMA (3,366 ₹) and 200 DMA (3,187 ₹), confirming short-term bullish momentum. RSI at 49.2 indicates neutral momentum, while MACD at 48.5 shows a positive crossover, supporting mild bullish bias. Bollinger Bands are moderately tight, suggesting consolidation with potential breakout.

🔑 Momentum Signals: Current price (3,429 ₹) is holding above support at 3,400–3,410 ₹. Resistance levels are seen at 3,500 ₹ and 3,600 ₹. Volume (70.6K) is above the 1-week average (38.4K), showing strong participation and confirming momentum.

🎯 Entry Zone: 3,400–3,410 ₹ near support.

💰 Exit Zone: 3,500 ₹ (partial profit) and 3,600 ₹ (full exit).

📊 Trend Status: Consolidating with bullish bias.

Positive

  • Strong ROCE (20.9%) and ROE (17.0%) highlight profitability.
  • EPS at 57.2 ₹ supports valuation strength.
  • Price trading above both 50 DMA and 200 DMA confirms bullish structure.
  • Low debt-to-equity ratio (0.01) ensures financial stability.
  • Volume above average supports breakout potential.

Limitation

  • High P/E (59.9) vs industry PE (46.6) indicates overvaluation.
  • Quarterly PAT declined (49.8 Cr. vs 89.5 Cr.).
  • PEG ratio at 5.51 reflects expensive growth valuation.
  • Neutral RSI suggests limited immediate upside momentum.

Company Negative News

  • Quarterly profit variation at -32.9% shows earnings pressure.
  • FII holdings increased only marginally (+0.02%), showing limited foreign confidence.

Company Positive News

  • DII holdings increased (+0.48%), showing domestic investor support.
  • Strong 52-week performance (79.9% index level).
  • Stock trading near all-time highs, reflecting investor confidence.

Industry

  • Industry PE at 46.6 suggests sector trading at moderate valuations compared to TIMKEN’s premium.
  • Engineering and industrial sector benefiting from infrastructure and manufacturing demand.

Conclusion

TIMKEN is consolidating with bullish bias supported by MACD, volume strength, and price action above key moving averages. Entry near 3,400–3,410 ₹ is favorable with exits at 3,500–3,600 ₹. While fundamentals remain strong with low debt and solid returns, high valuation and declining quarterly profits limit conviction. Best suited for swing trades with cautious monitoring of earnings trend.

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