LEMONTREE - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.2
| Stock Code | LEMONTREE | Market Cap | 9,630 Cr. | Current Price | 122 ₹ | High / Low | 181 ₹ |
| Stock P/E | 83.4 | Book Value | 16.4 ₹ | Dividend Yield | 0.00 % | ROCE | 11.2 % |
| ROE | 8.33 % | Face Value | 10.0 ₹ | DMA 50 | 118 ₹ | DMA 200 | 135 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | -3.78 % | PAT Qtr | 36.4 Cr. | PAT Prev Qtr | 22.6 Cr. |
| RSI | 60.4 | MACD | 2.21 | Volume | 50,40,455 | Avg Vol 1Wk | 33,73,754 |
| Low price | 99.6 ₹ | High price | 181 ₹ | PEG Ratio | 0.83 | Debt to equity | 0.28 |
| 52w Index | 27.1 % | Qtr Profit Var | 27.8 % | EPS | 1.29 ₹ | Industry PE | 29.6 |
Analysis: Lemon Tree Hotels is trading at 122 ₹, close to its 50 DMA (118 ₹) but below its 200 DMA (135 ₹), indicating short-term support but medium-term weakness. RSI at 60.4 and MACD at 2.21 suggest moderate bullish momentum. The valuation is stretched with a P/E of 83.4 compared to the industry average of 29.6, while ROCE (11.2%) and ROE (8.33%) are modest. Quarterly PAT growth (36.4 Cr vs 22.6 Cr) and EPS improvement show operational recovery, but DII holdings have declined sharply (-3.78%), raising caution. The PEG ratio of 0.83 indicates some growth potential, though the stock remains expensive.
Optimal Entry Price: Around 118 ₹ (DMA 50 support zone), which offers a safer entry point.
Exit Strategy: If already holding, consider exiting near 135–140 ₹ (200 DMA resistance zone) or if RSI approaches 70. A stop-loss can be placed around 110 ₹ to limit downside risk.
✅ Positive
- Quarterly PAT growth (36.4 Cr vs 22.6 Cr).
- EPS improvement to 1.29 ₹.
- PEG ratio at 0.83, showing growth potential relative to valuation.
- Volume higher than weekly average, indicating short-term interest.
⚠️ Limitation
- High P/E ratio (83.4) compared to industry average.
- ROCE (11.2%) and ROE (8.33%) remain modest.
- Stock trading far below 52-week high (181 ₹), showing limited momentum.
📉 Company Negative News
- DII holdings decreased significantly (-3.78%).
- Valuation remains expensive despite moderate fundamentals.
📈 Company Positive News
- Strong quarterly profit growth (27.8% variation).
- EPS and PAT showing consistent improvement.
- FII holdings increased slightly (+0.09%).
🏭 Industry
- Industry P/E at 29.6, much lower than Lemon Tree, highlighting overvaluation.
- Hospitality sector showing recovery trends with rising demand post-pandemic.
🔎 Conclusion
Lemon Tree Hotels is a moderately suitable candidate for swing trading, supported by improving profits and growth potential. However, high valuation and reduced DII confidence limit upside. Entry near 118 ₹ is optimal, with exit around 135–140 ₹. Risk management is essential due to stretched valuations and sector volatility.