LEMONTREE - Swing Trade Analysis with AI Signals
Back to ListHere’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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