LTF - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.3

📈 L&T Finance is showing strong momentum, solid earnings growth, and institutional support, making it a compelling swing trade candidate.

🎯 Optimal Entry Price: ₹275–₹280

🚪 Exit Target (if already holding): ₹290–₹300

🔍 Positive

• 📈 MACD at 7.55 confirms bullish momentum.
• 📈 RSI at 74.4 indicates strong buying interest, nearing breakout zone.
• 📈 Price above both 50 DMA and 200 DMA (₹250 and ₹206), confirming a strong uptrend.
• 📈 P/E of 26.2 is slightly above industry average (22.6), but justified by growth.
• 📈 PEG ratio of 0.20 suggests attractive valuation relative to earnings growth.
• 📈 EPS of ₹10.7 and PAT growth from ₹694 Cr to ₹728 Cr support earnings strength.
• 📈 FII and DII holdings increased by 0.21% and 0.23%, indicating institutional confidence.

⚠️ Limitation

• 📉 RSI above 70 may lead to short-term profit booking.
• 📉 Volume slightly below weekly average (69.4L vs 76.3L), suggesting reduced momentum.
• 📉 ROCE of 8.70% and ROE of 10.8% are moderate for a financial services firm.
• 📉 Debt-to-equity ratio of 3.76 is high, typical for NBFCs but worth monitoring.
• 📉 Dividend yield of 0.98% is modest for income-focused investors.

📉 Company Negative News

• 📉 Elevated RSI and high debt levels may limit short-term upside.

📈 Company Positive News

• 📈 PAT grew 5.6% QoQ, showing consistent earnings momentum.
• 📈 Institutional inflows and PEG ratio support valuation strength.

💰 Industry

• 💰 NBFCs benefit from rising credit demand, rural financing, and digital lending platforms.
• 📉 Risks include interest rate sensitivity, regulatory changes, and asset quality concerns.

✅ Conclusion

• 📈 L&T Finance is a strong swing trade candidate with bullish technicals, earnings momentum, and institutional support.
• 🎯 Entry near ₹275–₹280 with exit around ₹290–₹300 is recommended for short-term traders.
• 📊 Long-term investors should monitor asset quality and debt levels for sustained upside.

I can also compare L&T Finance with Bajaj Finance or M&M Financial to help you identify stronger swing setups in the NBFC space.