LT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.1
| Stock Code | LT | Market Cap | 5,55,325 Cr. | Current Price | 4,038 ₹ | High / Low | 4,195 ₹ |
| Stock P/E | 49.1 | Book Value | 494 ₹ | Dividend Yield | 0.84 % | ROCE | 18.5 % |
| ROE | 17.1 % | Face Value | 2.00 ₹ | DMA 50 | 3,943 ₹ | DMA 200 | 3,781 ₹ |
| Chg in FII Hold | 0.58 % | Chg in DII Hold | -0.35 % | PAT Qtr | 3,471 Cr. | PAT Prev Qtr | 1,212 Cr. |
| RSI | 58.0 | MACD | -28.0 | Volume | 39,55,033 | Avg Vol 1Wk | 31,68,603 |
| Low price | 2,965 ₹ | High price | 4,195 ₹ | PEG Ratio | 2.89 | Debt to equity | 0.27 |
| 52w Index | 87.2 % | Qtr Profit Var | 44.4 % | EPS | 45.3 ₹ | Industry PE | 17.1 |
📊 LT shows strong potential for swing trading. The RSI at 58.0 indicates neutral-to-slightly overbought conditions, while MACD at -28.0 reflects mild bearish momentum. The PEG ratio of 2.89 suggests expensive growth prospects, and the high P/E of 49.1 compared to industry average (17.1) reinforces stretched valuation. Current price (4,038 ₹) is above both 50 DMA (3,943 ₹) and 200 DMA (3,781 ₹), confirming medium-term strength. Fundamentals remain solid with ROCE (18.5%), ROE (17.1%), and EPS (45.3 ₹), while quarterly profit growth adds confidence.
✅ Optimal Entry Price: 3,950–4,000 ₹ (near 50 DMA support, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 4,150–4,200 ₹ (near recent high resistance). Trail stop-loss near 3,900 ₹ to protect downside.
Positive
- 📈 Strong ROCE (18.5%) and ROE (17.1%) highlight efficient capital use.
- 💹 EPS of 45.3 ₹ supports earnings strength.
- 💰 Dividend yield of 0.84% adds investor appeal.
- 📊 PAT growth from 1,212 Cr. to 3,471 Cr. shows strong profitability momentum.
- 📊 Volume (39.5L vs avg 31.6L) indicates active investor participation.
- 🔒 Low debt-to-equity (0.27) ensures financial stability.
Limitation
- ⚠️ Very high P/E (49.1) compared to industry average (17.1) suggests stretched valuation.
- 📉 PEG ratio of 2.89 indicates expensive growth prospects.
- 📉 RSI at 58.0 suggests limited upside before overbought territory.
- 📉 MACD negative (-28.0) confirms mild bearish trend.
Company Negative News
- 📉 Decline in DII holding (-0.35%) signals weaker domestic institutional support.
Company Positive News
- 📈 Increase in FII holding (+0.58%) reflects foreign investor confidence.
- 💹 Quarterly profit growth (+44.4%) supports near-term optimism.
Industry
- 🏭 Industry P/E at 17.1 is much lower than LT’s 49.1, suggesting sector valuations are more modest.
- 📊 Sector momentum remains strong with 52-week index gain of 87.2%.
Conclusion
🔎 LT earns a swing trade rating of 4.1. Entry near 3,950–4,000 ₹ provides margin of safety, while exit around 4,150–4,200 ₹ aligns with resistance levels. Strong fundamentals, profit growth, and foreign investor support back the trade, but high valuation and mild bearish technicals require cautious position sizing and disciplined stop-loss management.