THELEELA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | THELEELA | Market Cap | 13,610 Cr. | Current Price | 407 ₹ | High / Low | 475 ₹ |
| Stock P/E | 61.3 | Book Value | 268 ₹ | Dividend Yield | 0.00 % | ROCE | 5.06 % |
| ROE | 1.08 % | Face Value | 10.0 ₹ | DMA 50 | 429 ₹ | DMA 200 | 428 ₹ |
| Chg in FII Hold | 0.52 % | Chg in DII Hold | -0.50 % | PAT Qtr | 78.3 Cr. | PAT Prev Qtr | 72.8 Cr. |
| RSI | 34.6 | MACD | -5.76 | Volume | 2,68,098 | Avg Vol 1Wk | 3,02,147 |
| Low price | 381 ₹ | High price | 475 ₹ | PEG Ratio | 2.01 | Debt to equity | 0.05 |
| 52w Index | 28.0 % | Qtr Profit Var | 673 % | EPS | 6.83 ₹ | Industry PE | 27.8 |
📊 The Leela shows weak fundamentals for swing trading. The RSI at 34.6 indicates oversold conditions, which could trigger a short-term bounce. However, the high P/E of 61.3 compared to the industry average of 27.8 suggests overvaluation. The MACD (-5.76) reflects bearish momentum, and volumes are below the weekly average, showing limited participation. Overall, this is a cautious swing trade candidate with limited upside potential.
💡 Optimal Entry Price: Around 385–395 ₹ (close to recent support levels).
📈 Exit Strategy (if already holding): Consider exiting near 429–440 ₹ (DMA resistance zone) unless momentum improves.
✅ Positive
- Quarterly PAT improved (78.3 Cr. vs 72.8 Cr.).
- EPS of 6.83 ₹ shows earnings growth potential.
- Debt-to-equity ratio of 0.05 indicates very low leverage.
- FII holdings increased (+0.52%), showing some institutional interest.
⚠️ Limitation
- High P/E (61.3) compared to industry average (27.8).
- Weak ROCE (5.06%) and ROE (1.08%).
- No dividend yield (0.00%).
- Stock trading below both 50 DMA and 200 DMA.
📉 Company Negative News
- ROE and ROCE remain very low, showing poor capital efficiency.
- DII holdings decreased (-0.50%), reflecting reduced domestic confidence.
📈 Company Positive News
- Quarterly profits improved sequentially.
- Strong YoY profit variation (673%).
- Low debt levels provide financial stability.
🏭 Industry
- Industry PE is 27.8, much lower than The Leela, suggesting peers are more reasonably valued.
- Hospitality sector is cyclical and sensitive to demand recovery trends.
🔎 Conclusion
The Leela is a weak swing trade candidate due to poor fundamentals and overvaluation. Entry near 385–395 ₹ offers limited risk, but upside is capped around 429–440 ₹ unless momentum strengthens. Investors should exercise caution, as the stock’s valuation is stretched compared to industry peers and technical indicators remain bearish.