LTF - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.1

📊 L&T Finance Holdings (LTF) shows good potential for swing trading. The stock is trading above both its 50 DMA (287 ₹) and 200 DMA (231 ₹), reflecting bullish momentum. RSI at 51.6 indicates neutral strength, while MACD is positive (4.07), suggesting continued upward trend. Fundamentally, the company has shown steady profit growth (+5.6% QoQ), EPS of 10.7 ₹, and trades at a P/E of 28.2 compared to industry average of 21.2. High debt-to-equity (3.76) reflects leverage risk typical of NBFCs, but strong institutional support and volume activity add confidence.

💡 Optimal Entry Price: Around 290–295 ₹ (near 50 DMA support zone).

🚪 Exit Strategy: If already holding, consider exiting near 310–315 ₹ (recent high and resistance zone) or if RSI crosses 65 with weakening momentum.

✅ Positive

• 📈 Quarterly PAT growth from 694 Cr. to 728 Cr. (+5.6%)
• 💰 EPS of 10.7 ₹ supports earnings base
• 📊 Stock trading above both 50 DMA and 200 DMA shows bullish trend
• 📦 Strong trading volume above weekly average (48,60,728 vs 38,56,812)

⚠️ Limitation

• 📉 High debt-to-equity ratio (3.76) adds leverage risk
• 📊 ROCE at 8.70% is modest compared to peers
• 📉 Dividend yield at 0.91% is relatively low
• 📊 Valuation premium with P/E of 28.2 vs industry 21.2

🚨 Company Negative News

• 📉 High leverage typical of NBFC sector
• 📊 Modest ROCE despite profit growth

🌟 Company Positive News

• 📈 Sequential PAT growth shows operational improvement
• 💡 FII holdings increased (+0.21%) and DII holdings also rose (+0.23%)

🏭 Industry

• 📊 Industry P/E at 21.2, LTF trades at a premium valuation
• 🏦 NBFC sector supported by strong credit demand and financial inclusion initiatives

📌 Conclusion

⚖️ L&T Finance Holdings is a good candidate for swing trading. Fundamentals are stable with profit growth and institutional support, while technical indicators show bullish momentum. A cautious entry near 290–295 ₹ could provide upside potential toward 310–315 ₹. Traders should monitor RSI and MACD closely to confirm momentum before committing to positions.

I can also outline short-term breakout levels beyond 315 ₹ to track potential upside continuation.