⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.

LODHA - Swing Trade Analysis with AI Signals

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Rating: 3.6

Last Updated Time : 05 May 26, 03:53 pm

📊 Swing Trade Rating: 3.6

Stock Code LODHA Market Cap 92,288 Cr. Current Price 924 ₹ High / Low 1,534 ₹
Stock P/E 31.6 Book Value 222 ₹ Dividend Yield 0.46 % ROCE 14.6 %
ROE 14.0 % Face Value 10.0 ₹ DMA 50 881 ₹ DMA 200 1,047 ₹
Chg in FII Hold -2.25 % Chg in DII Hold 1.45 % PAT Qtr 794 Cr. PAT Prev Qtr 1,146 Cr.
RSI 62.7 MACD 18.1 Volume 29,35,239 Avg Vol 1Wk 36,91,887
Low price 651 ₹ High price 1,534 ₹ PEG Ratio 0.60 Debt to equity 0.48
52w Index 30.9 % Qtr Profit Var 7.12 % EPS 29.2 ₹ Industry PE 27.3

Analysis: Lodha (Macrotech Developers) is trading at 924 ₹, above its 50 DMA (881 ₹) but below its 200 DMA (1,047 ₹), suggesting short-term strength but medium-term resistance. RSI at 62.7 and MACD at 18.1 indicate moderate bullish momentum. The valuation is slightly above industry average with a P/E of 31.6 vs 27.3, while ROCE (14.6%) and ROE (14.0%) are decent. Quarterly PAT declined (794 Cr vs 1,146 Cr), showing some earnings pressure. The PEG ratio of 0.60 suggests reasonable growth potential, but FII holdings dropped significantly (-2.25%), raising caution. DII support (+1.45%) provides some balance. The stock is trading far below its 52-week high (1,534 ₹), limiting upside in the near term.

Optimal Entry Price: Around 880–900 ₹ (near 50 DMA support zone).

Exit Strategy: If already holding, consider exiting near 1,040–1,050 ₹ (DMA 200 resistance zone) or if RSI approaches 70. A stop-loss can be placed around 860 ₹ to manage downside risk.

✅ Positive

  • EPS at 29.2 ₹, reflecting solid earnings base.
  • ROCE (14.6%) and ROE (14.0%) are healthy for the sector.
  • DII holdings increased (+1.45%), showing domestic institutional support.
  • PEG ratio at 0.60, suggesting growth potential relative to valuation.

⚠️ Limitation

  • P/E ratio (31.6) slightly above industry average.
  • Quarterly PAT declined (794 Cr vs 1,146 Cr).
  • Stock trading far below 52-week high (1,534 ₹).
  • Volume below weekly average, limiting momentum.

📉 Company Negative News

  • FII holdings decreased significantly (-2.25%).
  • Quarterly profit decline raises concerns about earnings stability.

📈 Company Positive News

  • DII holdings increased (+1.45%).
  • Stock showing short-term strength above 50 DMA.

🏭 Industry

  • Industry P/E at 27.3, slightly lower than Lodha, highlighting mild overvaluation.
  • Real estate sector remains cyclical but supported by urban housing demand.

🔎 Conclusion

Lodha is a moderately suitable candidate for swing trading, supported by decent fundamentals and institutional backing. Entry near 880–900 ₹ is optimal, with exit around 1,040–1,050 ₹. Risk management is essential due to earnings decline, reduced FII confidence, and resistance at the 200 DMA.

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