LEMONTREE - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.7
| Stock Code | LEMONTREE | Market Cap | 8,436 Cr. | Current Price | 106 ₹ | High / Low | 181 ₹ |
| Stock P/E | 73.1 | Book Value | 16.4 ₹ | Dividend Yield | 0.00 % | ROCE | 11.2 % |
| ROE | 8.33 % | Face Value | 10.0 ₹ | DMA 50 | 123 ₹ | DMA 200 | 142 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.26 % | PAT Qtr | 36.4 Cr. | PAT Prev Qtr | 22.6 Cr. |
| RSI | 35.0 | MACD | -5.92 | Volume | 35,16,690 | Avg Vol 1Wk | 59,33,847 |
| Low price | 99.6 ₹ | High price | 181 ₹ | PEG Ratio | 0.72 | Debt to equity | 0.28 |
| 52w Index | 8.44 % | Qtr Profit Var | 27.8 % | EPS | 1.29 ₹ | Industry PE | 27.8 |
📊 Lemon Tree Hotels shows weak signals for swing trading. The RSI at 35.0 suggests oversold conditions, which could lead to a short-term bounce. However, the high P/E of 73.1 compared to the industry average of 27.8 indicates significant overvaluation. The MACD (-5.92) reflects bearish momentum, and volumes are below the weekly average, showing reduced participation. Overall, this is a cautious swing trade candidate with limited upside potential.
💡 Optimal Entry Price: Around 100–105 ₹ (near recent support levels).
📈 Exit Strategy (if already holding): Consider exiting near 123–130 ₹ (50 DMA resistance zone) unless momentum improves.
✅ Positive
- Quarterly PAT improved (36.4 Cr. vs 22.6 Cr.).
- EPS of 1.29 ₹ shows earnings growth potential.
- Debt-to-equity ratio of 0.28 indicates manageable leverage.
- PEG ratio of 0.72 suggests some growth potential relative to valuation.
⚠️ Limitation
- High P/E (73.1) compared to industry average (27.8).
- Weak ROCE (11.2%) and ROE (8.33%).
- No dividend yield (0.00%).
- Stock trading below both 50 DMA and 200 DMA.
📉 Company Negative News
- DII holdings decreased (-0.26%), showing reduced domestic investor confidence.
- Stock has fallen sharply from 52-week high (181 ₹ to 106 ₹).
📈 Company Positive News
- Quarterly profits improved sequentially.
- Strong YoY profit variation (27.8%).
- FII holdings increased slightly (+0.05%).
🏭 Industry
- Industry PE is 27.8, much lower than Lemon Tree Hotels, suggesting peers are more reasonably valued.
- Hospitality sector is cyclical and sensitive to demand recovery trends.
🔎 Conclusion
Lemon Tree Hotels is a weak swing trade candidate due to overvaluation and bearish technical indicators. Entry near 100–105 ₹ offers limited risk, but upside is capped around 123–130 ₹ unless momentum strengthens. Investors should exercise caution, as the stock’s valuation is stretched compared to industry peers and technical signals remain negative.