LEMONTREE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| Stock Code | LEMONTREE | Market Cap | 9,316 Cr. | Current Price | 118 ₹ | High / Low | 181 ₹ |
| Stock P/E | 80.7 | Book Value | 16.4 ₹ | Dividend Yield | 0.00 % | ROCE | 11.2 % |
| ROE | 8.33 % | Face Value | 10.0 ₹ | DMA 50 | 117 ₹ | DMA 200 | 135 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | -3.78 % | PAT Qtr | 36.4 Cr. | PAT Prev Qtr | 22.6 Cr. |
| RSI | 54.4 | MACD | 2.02 | Volume | 23,58,193 | Avg Vol 1Wk | 28,70,298 |
| Low price | 99.6 ₹ | High price | 181 ₹ | PEG Ratio | 0.80 | Debt to equity | 0.28 |
| 52w Index | 22.2 % | Qtr Profit Var | 27.8 % | EPS | 1.29 ₹ | Industry PE | 28.8 |
📊 Lemon Tree Hotels is trading slightly above its 50 DMA (₹117) but below its 200 DMA (₹135), showing short-term support but medium-term weakness. RSI at 54.4 reflects neutral momentum, while MACD (2.02) indicates mild bullish bias. Bollinger Bands suggest consolidation with limited breakout potential. Current volume (23.6 lakh) is below the 1-week average (28.7 lakh), signaling reduced participation.
💡 Optimal Entry: ₹115–₹118 (near 50 DMA support)
🚪 Exit if Holding: Profit-taking zone around ₹122–₹126; Stop-loss below ₹113
📈 Trend Status: Consolidating with weak bullish undertone
✅ Positive
- Trading above 50 DMA support
- Sequential PAT growth (₹22.6 Cr → ₹36.4 Cr)
- PEG ratio at 0.80 indicates reasonable growth-adjusted valuation
- FII holdings increased (+0.09%)
⚠️ Limitation
- High valuation (P/E 80.7 vs industry 28.8)
- Stock trading below 200 DMA (₹135)
- Decline in DII holdings (-3.78%)
- Low ROE (8.33%) and ROCE (11.2%)
📉 Company Negative News
- Domestic institutional investors reducing exposure
- Profitability ratios remain weak despite PAT growth
📈 Company Positive News
- Strong sequential PAT growth supports earnings visibility
- FII inflows indicate foreign investor confidence
🏭 Industry
- Hospitality sector trading at industry P/E of 28.8
- Sector outlook stable with recovery trends visible
🔎 Conclusion
Lemon Tree Hotels is consolidating near its 50 DMA with neutral momentum. Entry around ₹115–₹118 offers a controlled risk setup, while exits around ₹122–₹126 are advisable. Despite PAT growth, stretched valuations and weak ROE/ROCE limit long-term attractiveness. Suitable for short-term trades with strict stop-loss discipline.