LTTS - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | LTTS | Market Cap | 40,478 Cr. | Current Price | 3,814 ₹ | High / Low | 5,647 ₹ |
| Stock P/E | 32.5 | Book Value | 545 ₹ | Dividend Yield | 1.44 % | ROCE | 27.9 % |
| ROE | 21.7 % | Face Value | 2.00 ₹ | DMA 50 | 4,158 ₹ | DMA 200 | 4,349 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.44 % | PAT Qtr | 314 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 36.8 | MACD | -173 | Volume | 84,357 | Avg Vol 1Wk | 62,866 |
| Low price | 3,654 ₹ | High price | 5,647 ₹ | PEG Ratio | 3.51 | Debt to equity | 0.10 |
| 52w Index | 8.03 % | Qtr Profit Var | 4.54 % | EPS | 115 ₹ | Industry PE | 26.5 |
📊 LTTS shows moderate potential for swing trading. The RSI at 36.8 indicates oversold conditions, while MACD at -173 reflects strong bearish momentum. The PEG ratio of 3.51 suggests expensive growth prospects, and the P/E of 32.5 is higher than the industry average (26.5). Current price (3,814 ₹) is below both 50 DMA (4,158 ₹) and 200 DMA (4,349 ₹), confirming medium-term weakness but offering entry near support levels. Fundamentals remain strong with ROCE (27.9%), ROE (21.7%), and EPS (115 ₹), though valuation is stretched.
✅ Optimal Entry Price: 3,700–3,800 ₹ (near support zone, offering margin of safety).
🚪 Exit Strategy if Holding: Consider profit booking around 4,150–4,200 ₹ (near 50 DMA resistance). Trail stop-loss near 3,650 ₹ to protect downside.
Positive
- 📈 Strong ROCE (27.9%) and ROE (21.7%) highlight excellent capital efficiency.
- 💹 EPS of 115 ₹ supports earnings strength.
- 💰 Dividend yield of 1.44% adds investor appeal.
- 📊 PAT growth from 307 Cr. to 314 Cr. shows incremental improvement.
- 🔒 Low debt-to-equity (0.10) ensures financial stability.
- 📊 Volume (84K vs avg 63K) indicates active investor participation.
Limitation
- ⚠️ High P/E (32.5) compared to industry average (26.5) suggests stretched valuation.
- 📉 PEG ratio of 3.51 indicates expensive growth prospects.
- 📉 Current price below both 50 DMA and 200 DMA reflects medium-term weakness.
- 📉 RSI near oversold levels shows weak momentum.
Company Negative News
- 📉 Decline in FII holding (-0.45%) signals reduced foreign investor confidence.
Company Positive News
- 📈 Increase in DII holding (+0.44%) reflects domestic institutional support.
- 💹 Quarterly profit growth (+4.54%) supports near-term optimism.
Industry
- 🏭 Industry P/E at 26.5 is lower than LTTS’s 32.5, suggesting sector valuations are more modest.
- 📊 Sector momentum remains modest with 52-week index gain of 8.03%.
Conclusion
🔎 LTTS earns a swing trade rating of 3.9. Entry near 3,700–3,800 ₹ provides margin of safety, while exit around 4,150–4,200 ₹ aligns with resistance levels. Strong fundamentals and institutional support back the trade, but high valuation, weak technicals, and declining foreign investor confidence require cautious position sizing and disciplined stop-loss management.