LT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | LT | Market Cap | 4,72,801 Cr. | Current Price | 3,434 ₹ | High / Low | 4,440 ₹ |
| Stock P/E | 41.8 | Book Value | 494 ₹ | Dividend Yield | 0.99 % | ROCE | 18.5 % |
| ROE | 17.1 % | Face Value | 2.00 ₹ | DMA 50 | 3,943 ₹ | DMA 200 | 3,841 ₹ |
| Chg in FII Hold | 0.58 % | Chg in DII Hold | -0.35 % | PAT Qtr | 3,471 Cr. | PAT Prev Qtr | 1,212 Cr. |
| RSI | 31.1 | MACD | -163 | Volume | 52,54,431 | Avg Vol 1Wk | 73,59,075 |
| Low price | 2,965 ₹ | High price | 4,440 ₹ | PEG Ratio | 2.46 | Debt to equity | 0.27 |
| 52w Index | 31.8 % | Qtr Profit Var | 44.4 % | EPS | 45.3 ₹ | Industry PE | 15.5 |
📊 LT shows fair potential for swing trading. The RSI at 31.1 indicates oversold conditions, while MACD (-163) reflects strong bearish sentiment. The current price (3,434 ₹) is below both the 50 DMA (3,943 ₹) and 200 DMA (3,841 ₹), confirming weakness. Fundamentals such as ROCE (18.5%), ROE (17.1%), and low debt-to-equity (0.27) are strong, though valuation appears stretched with a P/E (41.8) compared to industry P/E (15.5). The PEG ratio of 2.46 suggests expensive growth-adjusted valuation, but earnings momentum remains supportive.
✅ Optimal Entry Price: Around 3,350–3,450 ₹ (near current support zone and above 52-week low of 2,965 ₹).
📈 Exit Strategy (if already holding): Consider exiting near 3,900–3,950 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
Positive
- Strong ROCE (18.5%) and ROE (17.1%) indicate efficient capital utilization.
- Low debt-to-equity ratio (0.27) provides financial stability.
- Quarterly PAT growth from 1,212 Cr. to 3,471 Cr. highlights robust earnings momentum.
- Dividend yield of 0.99% offers modest income support.
Limitation
- Stock trading below both 50 DMA and 200 DMA reflects bearish sentiment.
- High P/E (41.8) compared to industry P/E (15.5) suggests overvaluation.
- PEG ratio of 2.46 indicates stretched growth-adjusted valuation.
- Volume (52.5 lakh) is lower than 1-week average (73.6 lakh), showing weaker participation.
Company Negative News
- DII holding decreased (-0.35%), showing reduced domestic institutional support.
Company Positive News
- FII holding increased (+0.58%), showing foreign investor confidence.
- Quarterly profit variation of 44.4% highlights strong earnings growth.
Industry
- Industry P/E (15.5) is much lower than company P/E (41.8), suggesting LT trades at a premium.
- Sector outlook remains positive, supported by infrastructure, engineering, and construction demand.
Conclusion
⚖️ LT is a fair candidate for swing trading with strong fundamentals and earnings momentum but weak technicals and stretched valuations. Entry near 3,350–3,450 ₹ offers potential upside, while a short-term rebound toward 3,900–3,950 ₹ is possible. Traders should maintain strict stop-losses around 3,300 ₹ to manage risk.