LTFOODS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.8

📉 LT Foods shows strong earnings growth and institutional support, but high valuation and weak technicals suggest a cautious swing setup.

🎯 Optimal Entry Price: ₹395–₹405

🚪 Exit Target (if already holding): ₹430–₹445

🔍 Positive

• 📈 ROCE of 15.5% and ROE of 12.0% reflect solid operational efficiency.
• 📈 Debt-to-equity ratio of 0.12 indicates a strong balance sheet.
• 📈 DII holding increased by 1.12%, showing strong domestic institutional confidence.
• 📈 PAT grew from ₹37.0 Cr to ₹71.2 Cr, a 16.6% QoQ increase.
• 📈 Volume above weekly average (10.7L vs 10.0L), suggesting rising interest.

⚠️ Limitation

• 📉 P/E of 67.6 is significantly above industry average (20.0), indicating overvaluation.
• 📉 MACD at -2.91 signals bearish momentum.
• 📉 RSI at 40.0 is neutral, lacking strong directional bias.
• 📉 Price below both 50 DMA and 200 DMA (₹427 and ₹415), showing technical resistance.
• 📉 PEG ratio of 2.90 suggests valuation is stretched relative to growth.

📉 Company Negative News

• 📉 FII holding declined by 0.03%, reflecting cautious foreign sentiment.
• 📉 RSI and MACD indicate weak momentum despite strong fundamentals.

📈 Company Positive News

• 📈 Strong PAT growth and EPS of ₹6.01 support earnings visibility.
• 📈 DII inflows and volume strength suggest renewed domestic interest.

🌾 Industry

• 🌾 Packaged food and staples benefit from rising demand, export opportunities, and brand premiumization.
• 📉 Risks include commodity price volatility, regulatory changes, and rural demand fluctuations.

✅ Conclusion

• 📉 LT Foods is a moderately strong swing trade candidate with solid fundamentals but weak technicals and valuation pressure.
• 🎯 Entry near ₹395–₹405 with exit around ₹430–₹445 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin trends and export growth for sustained upside.

I can also compare LT Foods with peers like KRBL or Chaman Lal Setia to help you identify stronger swing setups in the packaged food segment.