LT - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📉 Larsen & Toubro Ltd (LT) Swing Trade Analysis

L&T is a fundamentally strong company with robust profitability and scale, but its technical indicators currently suggest weakness, making it a neutral-to-cautious swing trade candidate. The stock is trading near its 200 DMA, and momentum indicators are bearish.

✅ Strengths

Fundamentals

ROE: 16.6% and ROCE: 14.5% — solid returns for a capital-intensive business

EPS: ₹115 — strong earnings base

PAT Qtr: ₹3,617 Cr — healthy profit, though down from previous quarter

Debt-to-Equity: 1.36 — manageable for an infra-heavy company

Valuation

P/E: 30.9 vs Industry PE of 23.8 — slightly premium, but justified by brand and scale

Book Value: ₹710 vs CMP ₹3,496 — trading at ~5x book

Volume: 20.7L vs Avg 16.2L — above-average interest

Quarterly Profit Growth: +29.8% — strong earnings momentum

⚠️ Weaknesses

Technical Indicators

RSI: 45.8 — weak momentum

MACD: -37.0 — bearish crossover

Price below 50 DMA (₹3,533) and hovering around 200 DMA (₹3,495) — trend indecisive

52w Index: 53.1% — moderate underperformance

FII Holding: ↓ 0.47% — foreign investors reducing exposure

Dividend Yield: 0.97% — modest income support

🎯 Optimal Entry Price

Entry Zone: ₹3,510–₹3,530

Wait for price to cross above 50 DMA with RSI > 50 and MACD turning positive

Confirm with bullish candlestick pattern or breakout above ₹3,533

🚪 Exit Strategy (If Already Holding)

Short-Term Target: ₹3,620–₹3,680

Based on resistance zones and Fibonacci retracement

Stop Loss: ₹3,440

Below recent support and psychological level

📌 Summary

L&T is a fundamentally strong stock but currently lacks technical momentum for a high-conviction swing trade. It’s best to wait for a breakout above ₹3,533 before entering. If already holding, consider exiting near ₹3,680 or trail stop loss to ₹3,440.

You can track LT’s technical setup on TradingView India

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