LEMONTREE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

🏨 Swing Trade Analysis: LEMONTREE (Lemon Tree Hotels Ltd.)

Lemon Tree Hotels is showing a stable technical setup with improving institutional sentiment and decent profitability. However, its extremely high valuation and recent earnings dip suggest a cautious swing trade approach.

✅ Strengths

Technical Momentum: Price ₹172 is above both 50-DMA (₹161) and 200-DMA (₹146), indicating a bullish trend.

MACD (5.35): Positive — signals upward momentum.

Institutional Sentiment: FII (+0.44%) and DII (+0.30%) holdings increased — mildly bullish.

Debt-to-Equity: Low at 0.32 — financially sound.

Qtr Profit Var (22.8%): Indicates year-on-year growth despite sequential dip.

⚠️ Weaknesses

Valuation: P/E of 131 vs industry average of 37.5 and PEG ratio of 1.29 — extremely overvalued.

Profitability: ROCE (11.2%) and ROE (8.33%) are modest — not ideal for capital efficiency.

Earnings Decline: PAT dropped from ₹36.0 Cr to ₹20.5 Cr — signals short-term weakness.

Volume: Slightly below weekly average — suggests reduced short-term interest.

Dividend Yield: 0.00% — no income incentive.

Book Value: ₹15.9 vs current price ₹172 — trading at a steep premium.

🎯 Optimal Entry Price

Buy Zone: ₹160–₹165

Near 50-DMA support; wait for RSI to rise above 60 and MACD to remain positive.

🚪 Exit Strategy (If Holding)

Target Exit: ₹178–₹181

Near recent highs; exit if RSI crosses 70 or MACD flattens.

Stop Loss: ₹155

Below this level, trend support weakens.

⚖️ Verdict

LEMONTREE is a moderate swing trade candidate, suitable for short-term technical plays. Entry near support and disciplined exit near resistance can yield favorable returns, but valuation and earnings softness demand tight risk control.

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