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LEMONTREE - Swing Trade Analysis with AI Signals

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Rating: 3.5

Last Updated Time : 19 Jun 26, 11:28 am

Here’s the structured swing trade analysis for Lemon Tree Hotels (LEMONTREE) based on the provided parameters

Swing Trade Rating: 3.5

Stock Code LEMONTREE Market Cap 8,867 Cr. Current Price 112 ₹ High / Low 181 ₹
Stock P/E 72.1 Book Value 17.3 ₹ Dividend Yield 0.00 % ROCE 11.9 %
ROE 9.37 % Face Value 10.0 ₹ DMA 50 113 ₹ DMA 200 129 ₹
Chg in FII Hold 0.09 % Chg in DII Hold -3.78 % PAT Qtr 43.4 Cr. PAT Prev Qtr 36.4 Cr.
RSI 51.3 MACD -1.40 Volume 65,54,993 Avg Vol 1Wk 58,53,227
Low price 99.6 ₹ High price 181 ₹ PEG Ratio 4.50 Debt to equity 0.24
52w Index 15.1 % Qtr Profit Var 20.6 % EPS 1.37 ₹ Industry PE 30.8

📊 Lemon Tree is trading at ₹112, slightly below its 50 DMA (₹113) and well under its 200 DMA (₹129), indicating mild weakness. RSI at 51.3 suggests neutral momentum, while MACD (-1.40) shows bearish undertone. Volumes (65.5L) are above weekly averages (58.5L), reflecting strong participation. Valuations remain stretched (P/E 72.1 vs industry 30.8), though quarterly PAT growth (₹36.4 Cr → ₹43.4 Cr) supports near-term sentiment. Debt-to-equity is manageable at 0.24, and ROCE/ROE are modest at 11.9% and 9.37% respectively.

💡 Optimal Entry: ₹108–₹110 (near support zone)

🚪 Exit if Holding: Profit-taking zone around ₹120–₹125; Stop-loss below ₹106

✅ Positive

  • Quarterly PAT growth (₹36.4 Cr → ₹43.4 Cr)
  • Strong trading volume above weekly average
  • Healthy ROCE (11.9%) and ROE (9.37%)
  • FII holdings increased (+0.09%)

⚠️ Limitation

  • High valuation (P/E 72.1 vs industry 30.8)
  • Trading below 200 DMA (₹129)
  • Bearish MACD (-1.40)
  • DII holdings declined (-3.78%)

📉 Company Negative News

  • Valuation pressure due to elevated P/E
  • Institutional selling from DIIs

📈 Company Positive News

  • Quarterly PAT improved from ₹36.4 Cr to ₹43.4 Cr
  • Strong trading activity with higher volumes

🏭 Industry

  • Hospitality sector P/E at 30.8, making Lemon Tree relatively expensive
  • Sector outlook stable with rising travel demand

🔎 Conclusion

Lemon Tree is a cautious candidate for swing trading with improving earnings and strong volume support. Entry near ₹108–₹110 offers a controlled risk setup, but exits should be considered around ₹120–₹125 due to valuation pressure and bearish MACD. Suitable for short-term trades, though risk-reward remains moderate.

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