LTTS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.7

📉 L&T Technology Services shows strong fundamentals and long-term potential, but weak technicals and valuation concerns suggest a cautious swing setup.

🎯 Optimal Entry Price: ₹4,050–₹4,090

🚪 Exit Target (if already holding): ₹4,200–₹4,300

🔍 Positive

• 📈 ROCE of 27.9% and ROE of 21.7% reflect excellent capital efficiency.
• 📈 Debt-to-equity ratio of 0.10 indicates a strong balance sheet.
• 📈 EPS of ₹116 supports earnings visibility.
• 📈 DII holding increased by 0.27%, showing domestic institutional confidence.
• 📈 Dividend yield of 1.34% adds value for income-focused investors.

⚠️ Limitation

• 📉 MACD at -27.0 signals bearish momentum.
• 📉 RSI at 41.1 is neutral, lacking strong directional bias.
• 📉 Price below both 50 DMA and 200 DMA (₹4,197 and ₹4,430), showing technical weakness.
• 📉 PEG ratio of 3.81 suggests valuation is stretched relative to growth.
• 📉 Volume below weekly average (53.8K vs 74.2K), indicating reduced momentum.

📉 Company Negative News

• 📉 FII holding declined by 0.17%, reflecting cautious foreign sentiment.
• 📉 PAT slightly declined QoQ from ₹308 Cr to ₹307 Cr, indicating flat earnings.

📈 Company Positive News

• 📈 Strong ROCE, ROE, and EPS metrics support long-term fundamentals.
• 📈 DII inflows suggest renewed domestic interest despite technical weakness.

🛠️ Industry

• 🛠️ Engineering R&D and digital tech services benefit from global digitization, automation, and product innovation.
• 📉 Risks include client concentration, currency fluctuations, and global macro uncertainty.

✅ Conclusion

• 📉 LTTS is a cautious swing trade candidate with strong fundamentals but weak technicals and valuation pressure.
• 🎯 Entry near ₹4,050–₹4,090 with exit around ₹4,200–₹4,300 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin trends and global tech demand for sustained upside.

I can also compare LTTS with Tata Elxsi or KPIT Technologies to help you identify stronger swing setups in the engineering services space.