LT - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | LT | Market Cap | 5,76,533 Cr. | Current Price | 4,190 ₹ | High / Low | 4,440 ₹ |
| Stock P/E | 53.3 | Book Value | 542 ₹ | Dividend Yield | 0.91 % | ROCE | 19.3 % |
| ROE | 14.8 % | Face Value | 2.00 ₹ | DMA 50 | 3,985 ₹ | DMA 200 | 3,889 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 0.33 % | PAT Qtr | 4,014 Cr. | PAT Prev Qtr | 3,756 Cr. |
| RSI | 64.4 | MACD | 49.9 | Volume | 17,72,018 | Avg Vol 1Wk | 26,82,463 |
| Low price | 3,288 ₹ | High price | 4,440 ₹ | PEG Ratio | 5.26 | Debt to equity | 0.17 |
| 52w Index | 78.3 % | Qtr Profit Var | 27.6 % | EPS | 45.7 ₹ | Industry PE | 17.4 |
LT shows strong potential for swing trading. Current price (₹4,190) is above both 50 DMA (₹3,985) and 200 DMA (₹3,889), reflecting bullish momentum. RSI at 64.4 indicates strength but is approaching overbought territory, while MACD at 49.9 confirms bullish crossover. Volume (17,72,018) is below the weekly average (26,82,463), showing reduced participation. Fundamentals remain solid with ROCE (19.3%) and ROE (14.8%), while debt-to-equity (0.17) ensures stability. Valuation is stretched with P/E (53.3) compared to industry PE (17.4), and PEG ratio (5.26) suggests growth is priced expensively. Quarterly PAT growth (+27.6%) adds confidence, though FII holdings decreased (-1.28%).
✅ Optimal Entry Price: ₹4,050–₹4,100 (near DMA support zone)
📈 Exit Strategy (if already holding): Consider profit booking near ₹4,350–₹4,400 (resistance zone). If momentum continues strongly, partial exit can be extended toward ₹4,440 (recent high).
👍 Positive
- ✅ Strong ROCE (19.3%) and ROE (14.8%) highlight efficiency.
- ✅ Low debt-to-equity ratio (0.17) ensures financial stability.
- ✅ Quarterly PAT growth (+27.6%) supports earnings momentum.
- ✅ Dividend yield of 0.91% adds investor confidence.
⚠️ Limitation
- ⚠️ High P/E (53.3) compared to industry PE (17.4) suggests overvaluation.
- ⚠️ PEG ratio of 5.26 indicates growth is priced expensively.
- ⚠️ FII holdings decreased (-1.28%), showing reduced foreign investor confidence.
- ⚠️ Volume below average, limiting breakout potential.
📰 Company Negative News
- 📉 FII stake reduction highlights cautious foreign sentiment.
- 📉 Valuation concerns due to high P/E multiples.
🌟 Company Positive News
- 📈 PAT improved significantly (₹3,756 Cr → ₹4,014 Cr).
- 📈 DII holdings increased (+0.33%), showing domestic institutional support.
🏭 Industry
- 🏭 Industry PE at 17.4, much lower than LT’s 53.3, suggesting peers trade at more reasonable valuations.
- 🏭 52-week index return of 78.3% reflects strong industry momentum.
✅ Conclusion
⚖️ LT is a strong swing trade candidate with entry around ₹4,050–₹4,100 and exit near ₹4,350–₹4,400. Strong earnings growth, low debt, and domestic inflows support the trade, but stretched valuations and reduced foreign participation require disciplined risk management.
For deeper refinement, you could explore peer benchmarking overlay for sector comparison or refine into a short-term intraday setup for tighter execution.