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Technical Report on Timken India Ltd By Shyam Advisory

March 21, 2022

Timken India Ltd is engaged in the manufacturing, distribution and sale of antifriction
bearings, components, accessories and mechanical power transmission
products for the customer base across different sectors. It also provided
maintenance contracts and refurbishment services and industrial services.
It was incorporated in 1987 and is a part of the global Timken Group.
Product/ Services Offerings
The company’s products include a wide range of engineered bearings and power
transmission products in its portfolio.
It also offers a wide range of industrial and overhaul services for bearing and power
Revenue Breakup
During FY20, bearings accounted for 63% of revenues, followed by components
(30%), maintenance and refurbishment services (4%) and bearing accessories (3%).
Geographical Revenue Breakup
In FY20, India accounted for ~75% revenues, followed by USA (13%) and others
The products are sold mostly to the automotive industry and Indian Railways. It
works with 50+ Industrial and 100+ Automotive channel partners.
The revenues from its largest customers accounted for ~25% of total revenues
in FY20.
Manufacturing Capabilities
The Co. has tapered roller bearing manufacturing plants in Jamshedpur and
Bharuch in Gujarat. Bharuch also has a manufacturing footprint for Cylindrical
Roller Bearings, Spherical Roller Bearings and Slewing Bearings.
Over the years, the company have doubled capacity at the plant in Jamshedpur.
R&D Support from Parent Company
The Timken Company is a global manufacturer of bearings and power transmission
products. Timken operates in 42 countries across the globe.It derives benefits from
the developments made by the R&D team at The Timken Company(US).
The Timken Technology Centre in Bangalore, one of four such centres in the
world, provides customers access to the global pool of engineering expertise and
the latest technological advancements.

Royalty Expenses
The company pays royalty expenses to The Timken Company, USA and had paid 29
crores of royalty in FY20 as compared to ~31 crores of royalty in FY19.
Merger of ABC Bearings Limited
In 2017, The co. entered into a definitive agreement to acquire ABC Bearings Ltd, a
manufacturer of tapered and cylindrical roller bearings and industrial bearings
including spherical roller bearings and slewing rings. ABC Bearings Limited with
manufacturing facilities at Bharuch and Dehradun merged with Timken India
Pursuant to the Scheme, the Company allotted ~72 Lakh equity shares to the
shareholders of ABC Bearings Ltd in the ratio of 5 equity shares of ₹ 10/- each of
the Company for every 8 shares of ₹ 10/- each held in ABC Bearings.
Timken India Limited was incorporated in 1987 as Tata Timken Limited, a JV
between Tata Iron and Steel Company and The Timken Company. It commenced
commercial production at its Jamshedpur plant in March 1992. TISCO and
TIMKEN each held a 40% equity stake in the company and the public held the rest.
In 1999, Timken acquired from Tata Steel its 40% stake in Tata Timken Limited.
The name of the Company was changed to Timken India Limited on July 2, 1999.

TIMKEN 0 - Shyam Advisory
Technical View: Timken , recently had a classical Ascending Triangle pattern
breakout with stronh Bullish candle ,RSI trading at overbought zone, MACD
crossover support the positive trend Overall structure look positive .

Volume analysis: – 1 Day Delivery volume Increase by 715.79% over 5 day average,
However; 1 Month: Delivery volume increase by 47.78% , Generation of positive
volumes and recent brekout indicate buying prospect for the stock, hence; We
recommend BUY signal for this share . As stock may retest the Breakout level which
is at 2114 , Therfore; Keeping in Mind Profit and loss ratio ,We recommand to Buy
this stock at 2110-2120 zone for Target 2300, Target 2400,Use Strict stop loss 2090
Moving Averages: -Timken India Ltd. is trading higher than 5 day, 20 day, 50 day,
100 day and 200 day moving averages
5 Day 2,002.29 50 Day 1,994.89 200 Day
20 Day 1,982.81 100 Day 1,944.99
Shareholding pattern:-

TIMKEN 1 - Shyam Advisory
The Promoter holdings 67.80% %. No change in Promoter holdings. No change in
Promoter pledged shares.

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