LT - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📈 Larsen & Toubro shows strong technical momentum and solid fundamentals, making it a favorable candidate for swing trading despite short-term earnings pressure.

🎯 Optimal Entry Price: ₹3,900–₹3,920

🚪 Exit Target (if already holding): ₹4,050–₹4,100

🔍 Positive

• 📈 MACD at 75.8 confirms strong bullish momentum.
• 📈 Price above both 50 DMA and 200 DMA (₹3,770 and ₹3,605), indicating a sustained uptrend.
• 📈 ROCE of 18.5% and ROE of 17.1% reflect efficient capital utilization.
• 📈 EPS of ₹42.2 supports earnings visibility.
• 📈 FII holding increased by 0.15%, showing foreign investor confidence.
• 📈 Debt-to-equity ratio of 0.27 indicates a healthy balance sheet for a capital-intensive business.

⚠️ Limitation

• 📉 P/E of 52.6 is significantly above industry average (22.2), suggesting premium valuation.
• 📉 PEG ratio of 3.10 implies valuation is stretched relative to growth.
• 📉 RSI at 59.3 is neutral, not yet in breakout territory.
• 📉 Volume below weekly average (21.7L vs 28.6L), indicating reduced short-term participation.

📉 Company Negative News

• 📉 PAT dropped significantly QoQ from ₹3,485 Cr to ₹1,212 Cr, a 39% decline.
• 📉 DII holding declined by 0.14%, reflecting cautious domestic sentiment.

📈 Company Positive News

• 📈 Strong ROCE and ROE metrics support long-term profitability.
• 📈 FII inflows and MACD strength suggest renewed foreign interest and technical momentum.

🏗️ Industry

• 🏗️ Infrastructure and engineering benefit from government capex, urban development, and energy transition projects.
• 📉 Risks include execution delays, regulatory hurdles, and input cost inflation.

✅ Conclusion

• 📈 L&T is a strong swing trade candidate with bullish technicals and solid fundamentals, despite short-term earnings volatility.
• 🎯 Entry near ₹3,900–₹3,920 with exit around ₹4,050–₹4,100 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin recovery and order book strength for sustained upside.

I can also compare L&T with peers like Siemens or ABB India to help you identify stronger swing setups in the engineering and infrastructure space.