Company Overview
Timken India Limited, a Timken Company subsidiary, started manufacturing bearings in India nearly three decades ago and today has state-of-the-art manufacturing plants in Jamshedpur and Bharuch to serve local bearing market needs and beyond. Timken India Limited is engaged in the manufacture and distribution of tapered roller bearings, components and accessories for the automotive sector and the railway industry. The Company also provides maintenance contract services and refurbishment services. The Company provides repair and maintenance services of industrial gear boxes at its gear box repairing facility at Raipur. The Company offers tapered roller bearings, AP cartridge tapered roller bearings and other combined ball or roller bearings. Its manufacturing facilities are located at Jamshedpur and Raipur, which cater to medium and heavy trucks, off-highway equipment, railways markets and exports. The Company offers a range of bearings, such as large size tapered roller bearings, spherical roller bearings, cylindrical roller bearings and specialty ball bearings. It also offers portfolio of belts, industrial chains and augurs, couplings, housed units, grease and lubrication systems for mechanical power transmission industry. Employing the highly collaborative technical selling model for which Timken is known, the India team works directly with large OEM customers and with end users through a network of authorized distributors to make design and application recommendations to optimize performance and reliability. The Timken Technology Centre in Bangalore, one of four such centers in the world, provides customers access to engineering expertise and the latest technological advancements.
Growth Drivers
• Timken India has an operating revenue of Rs.1617375 Cr on a trailing twelve month basis.
• An annual revenue de-growth of 2 percent needs improvement, Pre-tax margin of 19 percent is great.
• Return on Equity of 15 percent is good
• The company is debt free and has a strong balance sheet enabling it to repot stable earnings growth across business cycles.
Price Action Analysis
The stock is currently trading within a trading range with a resistance zone at 1085 and a support zone at 930. On a monthly time price action formed a Bearish pin bar with a low at 942. With a bearish pin bar we form a bearish expectation. The bearish expectation will be confirmed only when price breaks the low of Bearish pin bar at 942. On a weekly time frame price action formed a Bullish PPR price Bar. With a Bullish PPR we form a Bullish expectation. The Bullish expectation will be confirmed only when price breaks the high of Bullish PPR at 1047. The bullish expectation will be invalidated on price breaking the low of Bullish PPR at 942. On a daily time frame price formed a consolidation pattern FR. Price witnessed upside breakout from the consolidation pattern of daily time frame.
Trade Strategy
Since the stock is trading within a range one should not invest the entire allocated capital for the particular stock all together. The investment strategy should be based upon the 2 stage trade decision approach. At stage 1 investment decision, 50 percent of the initial capital for the particular stock should be deployed. Only when price breaks out of the consolidation pattern a stage 2 investment decision should be considered.
Trade Decision
Stage 1:
Holding Period: 3 to 6 Months | Buy Entry: Above 1047 | Initial Stop- Loss: 940 | Potential Measured Move: 1152 to 1205 | Risk on Initial Capital: 10.13% | Expected Returns: 10 to 15% |
Stage 2:
Will be updated only on a valid breakout of the consolidation base.
Disclaimer
All investment ideas published are for educational purpose. Investment decisions involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Timken India Limited, a Timken Company subsidiary, started manufacturing bearings in India nearly three decades ago and today has state-of-the-art manufacturing plants in Jamshedpur and Bharuch to serve local bearing market needs and beyond. Timken India Limited is engaged in the manufacture and distribution of tapered roller bearings, components and accessories for the automotive sector and the railway industry. The Company also provides maintenance contract services and refurbishment services. The Company provides repair and maintenance services of industrial gear boxes at its gear box repairing facility at Raipur. The Company offers tapered roller bearings, AP cartridge tapered roller bearings and other combined ball or roller bearings. Its manufacturing facilities are located at Jamshedpur and Raipur, which cater to medium and heavy trucks, off-highway equipment, railways markets and exports. The Company offers a range of bearings, such as large size tapered roller bearings, spherical roller bearings, cylindrical roller bearings and specialty ball bearings. It also offers portfolio of belts, industrial chains and augurs, couplings, housed units, grease and lubrication systems for mechanical power transmission industry. Employing the highly collaborative technical selling model for which Timken is known, the India team works directly with large OEM customers and with end users through a network of authorized distributors to make design and application recommendations to optimize performance and reliability. The Timken Technology Centre in Bangalore, one of four such centers in the world, provides customers access to engineering expertise and the latest technological advancements.
Growth Drivers
• Timken India has an operating revenue of Rs.1617375 Cr on a trailing twelve month basis.
• An annual revenue de-growth of 2 percent needs improvement, Pre-tax margin of 19 percent is great.
• Return on Equity of 15 percent is good
• The company is debt free and has a strong balance sheet enabling it to repot stable earnings growth across business cycles.
Price Action Analysis
The stock is currently trading within a trading range with a resistance zone at 1085 and a support zone at 930. On a monthly time price action formed a Bearish pin bar with a low at 942. With a bearish pin bar we form a bearish expectation. The bearish expectation will be confirmed only when price breaks the low of Bearish pin bar at 942. On a weekly time frame price action formed a Bullish PPR price Bar. With a Bullish PPR we form a Bullish expectation. The Bullish expectation will be confirmed only when price breaks the high of Bullish PPR at 1047. The bullish expectation will be invalidated on price breaking the low of Bullish PPR at 942. On a daily time frame price formed a consolidation pattern FR. Price witnessed upside breakout from the consolidation pattern of daily time frame.
Trade Strategy
Since the stock is trading within a range one should not invest the entire allocated capital for the particular stock all together. The investment strategy should be based upon the 2 stage trade decision approach. At stage 1 investment decision, 50 percent of the initial capital for the particular stock should be deployed. Only when price breaks out of the consolidation pattern a stage 2 investment decision should be considered.
Trade Decision
Stage 1:
Holding Period: 3 to 6 Months | Buy Entry: Above 1047 | Initial Stop- Loss: 940 | Potential Measured Move: 1152 to 1205 | Risk on Initial Capital: 10.13% | Expected Returns: 10 to 15% |
Stage 2:
Will be updated only on a valid breakout of the consolidation base.
Disclaimer
All investment ideas published are for educational purpose. Investment decisions involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Order cancelled:
Price failed to move above the Entry Levels at 1047 instead violated the Stop Loss levels at 940 and hence the the current view is invalidated. We will wait for a Low Risk High Probability Trade Setup.
