LEMONTREE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | LEMONTREE | Market Cap | 10,127 Cr. | Current Price | 128 ₹ | High / Low | 181 ₹ |
| Stock P/E | 94.2 | Book Value | 16.4 ₹ | Dividend Yield | 0.00 % | ROCE | 11.2 % |
| ROE | 8.33 % | Face Value | 10.0 ₹ | DMA 50 | 148 ₹ | DMA 200 | 151 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.26 % | PAT Qtr | 22.6 Cr. | PAT Prev Qtr | 20.5 Cr. |
| RSI | 30.7 | MACD | -8.26 | Volume | 29,06,317 | Avg Vol 1Wk | 43,91,226 |
| Low price | 111 ₹ | High price | 181 ₹ | PEG Ratio | 0.93 | Debt to equity | 0.28 |
| 52w Index | 24.9 % | Qtr Profit Var | 16.5 % | EPS | 1.36 ₹ | Industry PE | 32.6 |
📊 Chart Patterns & Trend: Lemon Tree is trading at 128 ₹, well below its 50 DMA (148 ₹) and 200 DMA (151 ₹). This indicates a bearish consolidation with downward bias. The stock is closer to its 52-week low (111 ₹) than its high (181 ₹), reflecting weak sentiment.
📈 RSI: At 30.7, RSI is near oversold territory, suggesting potential for a short-term rebound but still weak momentum.
📉 MACD: Negative at -8.26, confirming bearish momentum and lack of bullish crossover signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
📊 Volume Trends: Current volume (29,06,317) is lower than average weekly volume (43,91,226), showing reduced participation and weak conviction in recent moves.
🎯 Entry Zone: 118–124 ₹ (near support and oversold RSI).
🎯 Exit Zone: 145–155 ₹ (near 50 DMA and 200 DMA resistance).
Positive
- Market cap of 10,127 Cr. reflects strong presence in hospitality sector.
- Quarterly PAT improved to 22.6 Cr. from 20.5 Cr.
- FII holdings increased slightly (0.05%), showing marginal foreign investor confidence.
- Debt-to-equity ratio at 0.28 is manageable.
- PEG ratio of 0.93 indicates earnings growth relative to valuation is reasonable compared to peers.
Limitation
- High P/E of 94.2 compared to industry PE of 32.6, making valuation expensive.
- ROCE (11.2%) and ROE (8.33%) are modest, limiting long-term compounding potential.
- Dividend yield is 0.00%, offering no income return for investors.
- Weak trading volumes reduce conviction in price action.
Company Negative News
- DII holdings decreased by 0.26%, showing reduced domestic institutional confidence.
- Stock trading near 52-week low, reflecting weak sentiment.
Company Positive News
- Quarterly PAT growth of 16.5% shows operational improvement.
- EPS improved to 1.36 ₹, indicating earnings momentum.
- FII stake increase reflects marginal global investor interest.
Industry
- Hospitality sector trading at industry PE of 32.6, highlighting Lemon Tree’s overvaluation.
- Sector outlook improving with tourism recovery, but valuations remain stretched.
Conclusion
⚖️ Lemon Tree is in a bearish consolidation phase with oversold RSI and negative MACD. Entry near 118–124 ₹ offers margin of safety, while exits around 145–155 ₹ provide profit-taking opportunities. Long-term investors should be cautious due to high valuations and modest ROE/ROCE, while short-term traders may exploit oversold conditions for swing trades.
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