LAURUSLABS - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 4.3

📈 Laurus Labs Ltd (LAURUSLABS) Swing Trade Analysis

Laurus Labs is currently exhibiting strong bullish momentum, having recently hit its 52-week high. While fundamentals are mixed, the technical setup is highly favorable for a short-term swing trade. However, caution is warranted due to stretched valuations and potential downside flagged by some brokerages.

✅ Strengths

Technical Momentum

RSI: 89.6 — extremely strong, though nearing overbought territory

MACD: +45.3 — powerful bullish crossover

Price above both 50 DMA (₹742) and 200 DMA (₹619) — confirms strong uptrend

Volume: 51.8L vs Avg 65.6L — healthy liquidity

Fundamentals

ROE: 7.45% and ROCE: 9.15% — modest but improving

Debt-to-Equity: 0.62 — manageable leverage

Qtr Profit Var: +1,192% — massive earnings rebound

PAT Qtr: ₹162 Cr vs ₹233 Cr — slight dip but still strong

Institutional Sentiment

FII holding ↑ 0.19%

DII holding ↑ 0.16% — mild accumulation

⚠️ Risks

Valuation Concerns

P/E: 97.0 vs Industry PE of 34.0 — extremely expensive

PEG Ratio: -3.57 — distorted due to earnings volatility

Book Value: ₹82.9 vs CMP ₹910 — trading at ~11x book

Overbought Zone

RSI near 90 — potential for short-term pullback

Brokerage Warnings

Goldman Sachs, Jefferies, and Kotak have issued “Sell” ratings with targets between ₹555–₹675

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Concerns over sustainability of ARV segment and margin compression

🎯 Optimal Entry Price

Entry Zone: ₹870–₹885

Ideal on minor dip or consolidation near breakout zone

Confirm with RSI stabilizing below 80 and MACD remaining positive

Avoid chasing above ₹914 unless volume surges

🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹945–₹975

Based on Fibonacci extension and analyst upgrades

Stop Loss: ₹860

Below breakout zone and psychological support

📌 Summary

Laurus Labs is a high-momentum swing trade candidate, but valuation and RSI levels suggest caution. Entry near ₹870–₹885 offers a favorable setup if momentum sustains. If already holding, consider exiting near ₹975 or trail stop loss to ₹860.

You can monitor live technical setups on TradingView India and read analyst commentary on CNBC TV18

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www.cnbctv18.com

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Zee Business

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