LEMONTREE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | LEMONTREE | Market Cap | 10,462 Cr. | Current Price | 132 ₹ | High / Low | 181 ₹ |
| Stock P/E | 97.3 | Book Value | 16.4 ₹ | Dividend Yield | 0.00 % | ROCE | 11.2 % |
| ROE | 8.33 % | Face Value | 10.0 ₹ | DMA 50 | 146 ₹ | DMA 200 | 151 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.26 % | PAT Qtr | 22.6 Cr. | PAT Prev Qtr | 20.5 Cr. |
| RSI | 38.9 | MACD | -7.35 | Volume | 29,89,573 | Avg Vol 1Wk | 37,82,944 |
| Low price | 111 ₹ | High price | 181 ₹ | PEG Ratio | 0.96 | Debt to equity | 0.28 |
| 52w Index | 30.6 % | Qtr Profit Var | 16.5 % | EPS | 1.36 ₹ | Industry PE | 31.6 |
📊 Lemon Tree Hotels shows weak momentum for swing trading at the current price of ₹132. The stock is trading below both its 50 DMA (₹146) and 200 DMA (₹151), indicating bearish pressure. RSI at 38.9 suggests the stock is approaching oversold territory, while MACD at -7.35 confirms negative momentum. Valuation is stretched with a P/E of 97.3 compared to industry average of 31.6, and ROE/ROCE remain modest. However, sequential PAT growth and a manageable debt-to-equity ratio (0.28) provide some positives.
✅ Optimal Entry Price: Around ₹120–125 (near support zone, better risk-reward).
🚪 Exit Strategy (if already holding): Consider exit near ₹145–150 (resistance zone close to 50 DMA). If price falls below ₹120, use stop-loss to protect capital.
Positive
- 📈 Sequential PAT growth (22.6 Cr. vs 20.5 Cr.).
- 🏦 FII holdings increased slightly (+0.05%).
- 💰 Manageable debt-to-equity ratio (0.28).
- 📊 PEG ratio (0.96) indicates fair growth relative to valuation.
Limitation
- ⚠️ Very high P/E (97.3 vs industry 31.6).
- 📉 Weak ROE (8.33%) and ROCE (11.2%).
- 📉 Trading below both 50 DMA and 200 DMA.
- 📉 Lower trading volume compared to weekly average.
Company Negative News
- 📉 DII holdings decreased (-0.26%).
- ⚠️ No dividend yield, reducing investor appeal.
Company Positive News
- 📈 PAT improved sequentially, showing operational growth.
- 🏦 Slight increase in FII stake signals cautious confidence.
Industry
- 🏨 Hospitality sector average PE is 31.6, Lemon Tree trades at a steep premium.
- 📊 Sector recovery supports growth, but valuations remain stretched.
Conclusion
⚖️ Lemon Tree Hotels is a weak-to-moderate candidate for swing trading. Entry near ₹120–125 offers better risk-reward, while exits should be targeted near ₹145–150. High valuation and weak return ratios limit upside, but sequential profit growth and manageable debt provide some support. Traders should remain cautious and apply strict stop-loss discipline below ₹120.