LT - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.9
| Stock Code | LT | Market Cap | 5,60,439 Cr. | Current Price | 4,074 ₹ | High / Low | 4,140 ₹ |
| Stock P/E | 54.7 | Book Value | 494 ₹ | Dividend Yield | 0.84 % | ROCE | 18.5 % |
| ROE | 17.1 % | Face Value | 2.00 ₹ | DMA 50 | 3,949 ₹ | DMA 200 | 3,714 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | -0.14 % | PAT Qtr | 1,212 Cr. | PAT Prev Qtr | 3,485 Cr. |
| RSI | 53.1 | MACD | 25.9 | Volume | 12,38,679 | Avg Vol 1Wk | 14,12,092 |
| Low price | 2,965 ₹ | High price | 4,140 ₹ | PEG Ratio | 3.22 | Debt to equity | 0.27 |
| 52w Index | 94.4 % | Qtr Profit Var | -39.0 % | EPS | 42.2 ₹ | Industry PE | 18.8 |
📊 Larsen & Toubro (LT) shows moderate-to-good potential for swing trading. The stock is trading above both its 50 DMA (3,949 ₹) and 200 DMA (3,714 ₹), reflecting bullish momentum. RSI at 53.1 indicates neutral strength, while MACD is positive (25.9), suggesting continued upward trend. Fundamentally, the company has strong ROCE (18.5%) and ROE (17.1%), low debt-to-equity (0.27), and EPS of 42.2 ₹. However, valuation is stretched with a P/E of 54.7 compared to industry average of 18.8, and quarterly PAT dropped sharply (-39%).
💡 Optimal Entry Price: Around 3,950–4,000 ₹ (near 50 DMA support zone).
🚪 Exit Strategy: If already holding, consider exiting near 4,120–4,140 ₹ (recent high and resistance zone) or if RSI crosses 65 with weakening momentum.
✅ Positive
- 📈 Strong ROCE (18.5%) and ROE (17.1%) indicate efficient capital use
- 💰 EPS of 42.2 ₹ supports earnings base
- 📊 Stock trading above both 50 DMA and 200 DMA shows bullish trend
- 📦 Dividend yield of 0.84% provides steady income
⚠️ Limitation
- 📉 High P/E ratio (54.7) compared to industry average (18.8)
- 📊 PEG ratio of 3.22 highlights growth-adjusted valuation risk
- 📉 Quarterly PAT declined sharply (-39%)
- 📊 Slight decline in DII holdings (-0.14%)
🚨 Company Negative News
- 📉 Quarterly PAT dropped from 3,485 Cr. to 1,212 Cr.
- 📊 Decline in DII holdings (-0.14%)
🌟 Company Positive News
- 📈 FII holdings increased slightly (+0.15%)
- 💡 Stock trading near 52-week high (4,140 ₹) shows investor confidence
🏭 Industry
- 📊 Industry P/E at 18.8, LT trades at a steep premium valuation
- 🏗️ Infrastructure and engineering sector supported by government spending and private investments
📌 Conclusion
⚖️ Larsen & Toubro is a moderately good candidate for swing trading. Fundamentals are strong with efficiency and low debt, while technical indicators show bullish momentum. However, stretched valuations and weak quarterly profits add caution. A careful entry near 3,950–4,000 ₹ could provide upside potential toward 4,120–4,140 ₹. Traders should monitor RSI and MACD closely to confirm momentum before committing to positions.
Would you like me to also highlight breakout levels beyond 4,140 ₹ to track potential upside continuation?
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