LTFOODS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.4

📊 LT Foods shows moderate potential for swing trading. The stock is trading slightly below both its 50 DMA (408 ₹) and 200 DMA (411 ₹), reflecting short-term weakness. RSI at 46.2 indicates neutral momentum, while MACD is negative (-5.24), suggesting bearish pressure. Fundamentally, the company has decent ROCE (15.5%) and ROE (12.0%), low debt-to-equity (0.12), and strong quarterly PAT growth (71.2 Cr. vs 37.0 Cr.). However, valuations are stretched with a high P/E of 66.6 compared to industry average of 20.1, and PEG ratio of 2.85 highlights growth-adjusted risk.

💡 Optimal Entry Price: Around 380–390 ₹ (near support zone, above 52-week low of 288 ₹).

🚪 Exit Strategy: If already holding, consider exiting near 420–440 ₹ (resistance around DMA levels) or if RSI crosses 60 with weakening momentum.

✅ Positive

• 📈 Quarterly PAT surged from 37.0 Cr. to 71.2 Cr. (+16.6% variation)
• 💰 Low debt-to-equity ratio (0.12) ensures financial stability
• 📊 ROCE (15.5%) and ROE (12.0%) indicate efficient capital use
• 📦 DII holdings increased (+1.12%), showing domestic institutional confidence

⚠️ Limitation

• 📉 High P/E ratio (66.6) compared to industry average (20.1)
• 📊 PEG ratio of 2.85 highlights growth-adjusted valuation risk
• 📉 Stock trading below both 50 DMA and 200 DMA shows technical weakness
• 📊 Weak trading volume compared to average (2,62,301 vs 5,38,548)

🚨 Company Negative News

• 📉 Slight decline in FII holdings (-0.03%)
• 📊 Technical weakness with negative MACD and below DMA levels

🌟 Company Positive News

• 📈 Strong quarterly PAT growth indicates operational improvement
• 💡 DII holdings increased significantly (+1.12%)

🏭 Industry

• 📊 Industry P/E at 20.1, LT Foods trades at a steep premium valuation
• 🏗️ Packaged foods and FMCG sector supported by rising demand for branded staples

📌 Conclusion

⚖️ LT Foods is a cautious candidate for swing trading. Fundamentals show profit growth and low debt, but technical indicators remain weak and valuations are stretched. A careful entry near 380–390 ₹ could provide upside potential toward 420–440 ₹. Traders should monitor RSI and MACD closely to confirm momentum reversal before committing to positions.

I can also outline short-term breakout levels beyond 440 ₹ to track potential upside continuation.