LTTS - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 4.2

📊 L&T Technology Services (LTTS) shows strong potential for swing trading. The stock is trading above both its 50 DMA (4,369 ₹) and 200 DMA (4,420 ₹), reflecting bullish momentum. RSI at 56.6 indicates healthy strength without being overbought, while MACD is strongly positive (88.9), confirming upward momentum. Fundamentally, the company has robust ROCE (27.9%) and ROE (21.7%), low debt-to-equity (0.10), and consistent earnings (EPS 116 ₹). Valuation is slightly stretched with a P/E of 38.9 compared to industry average of 31.6, and PEG ratio of 4.20 suggests growth-adjusted risk.

💡 Optimal Entry Price: Around 4,400–4,450 ₹ (near DMA support zone).

🚪 Exit Strategy: If already holding, consider exiting near 5,500–5,600 ₹ (resistance close to 52-week high) or if RSI crosses 70 with weakening momentum.

✅ Positive

• 📈 Strong ROCE (27.9%) and ROE (21.7%) indicate efficient capital use
• 💰 Low debt-to-equity ratio (0.10) ensures financial stability
• 📊 EPS of 116 ₹ supports strong earnings base
• 📦 Dividend yield of 1.19% adds shareholder value

⚠️ Limitation

• 📉 High P/E ratio (38.9) compared to industry average (31.6)
• 📊 PEG ratio of 4.20 highlights growth-adjusted valuation risk
• 📉 Quarterly PAT remained flat (308 Cr. vs 307 Cr.)
• 📊 Slight decline in FII holdings (-0.17%)

🚨 Company Negative News

• 📉 Marginal decline in FII holdings (-0.17%)
• 📊 Flat quarterly PAT performance despite strong fundamentals

🌟 Company Positive News

• 📈 DII holdings increased (+0.27%), showing domestic institutional confidence
• 💡 Strong capital efficiency and consistent dividend payout

🏭 Industry

• 📊 Industry P/E at 31.6, LTTS trades at a premium valuation
• 🏗️ Engineering and technology services sector supported by global demand for digital transformation

📌 Conclusion

⚖️ LTTS is a good candidate for swing trading. Fundamentals are strong with high efficiency ratios, low debt, and institutional support, while technical indicators show bullish momentum. A cautious entry near 4,400–4,450 ₹ could provide upside potential toward 5,500–5,600 ₹. Traders should monitor RSI and MACD closely to confirm momentum before committing to positions.

I can also outline short-term breakout levels beyond 5,600 ₹ to track potential upside continuation.