LAURUSLABS - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.9

🧪 Swing Trade Analysis: LAURUSLABS (Laurus Labs Ltd.)

Laurus Labs is currently exhibiting strong technical momentum and a sharp recovery in earnings, making it a viable swing trade candidate. However, its valuation is extremely stretched and RSI indicates overbought conditions, which calls for caution.

✅ Strengths

Technical Momentum: Price ₹923 is above both 50-DMA (₹845) and 200-DMA (₹694), confirming a strong bullish trend.

MACD (15.8): Strongly positive — indicates continued upward momentum.

Volume: More than double the weekly average — strong market interest.

Earnings Rebound: PAT surged from ₹252 Cr to ₹158 Cr with a Qtr Profit Var of 449% — signals a sharp turnaround.

Institutional Sentiment: FII (+0.19%) and DII (+0.16%) holdings increased — mildly bullish.

Debt-to-Equity: Moderate at 0.52 — financially stable.

⚠️ Weaknesses

Valuation: P/E of 97.8 vs industry average of 33.4 and PEG ratio of -4.21 — extremely overvalued.

RSI (72.6): Overbought — signals potential for short-term correction.

Profitability: ROCE (9.47%) and ROE (7.75%) are modest — not ideal for capital efficiency.

Dividend Yield: 0.13% — minimal income incentive.

52w Index (99.3%): Trading near yearly high — limited upside before resistance.

🎯 Optimal Entry Price

Buy Zone: ₹880–₹900

Wait for RSI to cool below 65 and MACD to remain positive before entering.

🚪 Exit Strategy (If Holding)

Target Exit: ₹950–₹970

Near psychological resistance; exit if RSI crosses 75 or MACD flattens.

Stop Loss: ₹875

Below this level, trend support weakens.

⚖️ Verdict

LAURUSLABS is a moderate-to-strong swing trade candidate, best suited for traders already holding the stock. New entries should wait for a pullback, as current levels reflect overbought conditions and stretched valuation.

Edit in a page