LTIM - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.4

📊 LTIMindtree (LTIM) shows strong potential for swing trading. The stock is trading above both its 50 DMA (5,898 ₹) and 200 DMA (5,496 ₹), reflecting bullish momentum. RSI at 63.5 indicates strong momentum but is approaching overbought territory, while MACD is highly positive (126), confirming upward strength. Fundamentally, the company has robust ROCE (27.6%) and ROE (21.6%), low debt-to-equity (0.10), and consistent profit growth (+13.6% QoQ). Valuation is stretched with a P/E of 38.1 compared to industry average of 26.4, and PEG ratio of 8.75 highlights growth-adjusted risk.

💡 Optimal Entry Price: Around 6,000–6,050 ₹ (near support zone, close to 50 DMA).

🚪 Exit Strategy: If already holding, consider exiting near 6,350–6,380 ₹ (recent high and resistance zone) or if RSI crosses 70 with weakening momentum.

✅ Positive

• 📈 Quarterly PAT increased from 1,297 Cr. to 1,386 Cr. (+13.6%)
• 💰 Strong ROCE (27.6%) and ROE (21.6%) indicate efficient capital use
• 📊 EPS of 162 ₹ supports strong earnings base
• 📦 Dividend yield of 1.06% adds shareholder value

⚠️ Limitation

• 📉 High P/E ratio (38.1) compared to industry average (26.4)
• 📊 PEG ratio of 8.75 highlights growth-adjusted valuation risk
• 📉 RSI near overbought levels, limiting immediate upside
• 📊 Slight decline in FII holdings (-0.22%)

🚨 Company Negative News

• 📉 Marginal decline in FII holdings (-0.22%)
• 📊 Valuation premium compared to industry peers

🌟 Company Positive News

• 📈 DII holdings increased (+0.47%), showing domestic institutional confidence
• 💡 Strong quarterly profit growth and consistent operational performance

🏭 Industry

• 📊 Industry P/E at 26.4, LTIM trades at a premium valuation
• 🏗️ IT services sector supported by global demand for digital transformation and outsourcing

📌 Conclusion

⚖️ LTIMindtree is a good candidate for swing trading. Fundamentals are strong with profit growth, low debt, and efficient capital use, while technical indicators show bullish momentum but caution near overbought levels. A careful entry near 6,000–6,050 ₹ could provide upside potential toward 6,350–6,380 ₹. Traders should monitor RSI and MACD closely to confirm momentum before committing to positions.

I can also outline short-term breakout levels beyond 6,380 ₹ to track potential upside continuation.