LTFOODS - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.6

🍚 Swing Trade Analysis: LTFOODS (LT Foods Ltd.)

LTFOODS offers a technically stable swing trade setup with strong institutional interest and low debt, but its high valuation and declining earnings suggest a cautious approach.

✅ Strengths

Technical Setup: Price ₹464 is above both 50-DMA (₹454) and 200-DMA (₹414), indicating a bullish trend.

MACD (1.06): Positive — suggests mild upward momentum.

ROCE (15.6%) & ROE (12.1%): Solid profitability metrics.

Debt-to-Equity: Very low at 0.07 — strong financial health.

Institutional Sentiment: FII (+0.36%) and DII (+1.06%) holdings increased — bullish signal.

Dividend Yield: 0.65% — adds holding incentive.

⚠️ Weaknesses

Valuation: P/E of 81.3 vs industry average of 21.1 and PEG ratio of 3.42 — extremely overvalued.

Earnings Decline: PAT dropped from ₹38.1 Cr to ₹37.0 Cr — signals weakening growth.

Volume: Below weekly average — reduced short-term interest.

RSI (56.4): Neutral — lacks strong momentum.

Book Value: ₹51.9 vs current price ₹464 — trading at a steep premium.

52w Index (76.4%): Trading in upper range — limited upside before resistance.

🎯 Optimal Entry Price

Buy Zone: ₹445–₹455

Near 50-DMA support; wait for RSI to rise above 60 and volume to improve.

🚪 Exit Strategy (If Holding)

Target Exit: ₹490–₹510

Near recent highs; exit if RSI crosses 70 or MACD flattens.

Stop Loss: ₹435

Below this level, trend support weakens.

⚖️ Verdict

LTFOODS is a moderate swing trade candidate, suitable for short-term technical plays. Entry near support and disciplined exit near resistance can work, but valuation and earnings softness demand tight risk control.

Edit in a page