LEMONTREE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | LEMONTREE | Market Cap | 8,520 Cr. | Current Price | 108 ₹ | High / Low | 181 ₹ |
| Stock P/E | 73.8 | Book Value | 16.4 ₹ | Dividend Yield | 0.00 % | ROCE | 11.2 % |
| ROE | 8.33 % | Face Value | 10.0 ₹ | DMA 50 | 124 ₹ | DMA 200 | 142 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.26 % | PAT Qtr | 36.4 Cr. | PAT Prev Qtr | 22.6 Cr. |
| RSI | 36.4 | MACD | -6.24 | Volume | 47,01,148 | Avg Vol 1Wk | 65,90,168 |
| Low price | 99.6 ₹ | High price | 181 ₹ | PEG Ratio | 0.73 | Debt to equity | 0.28 |
| 52w Index | 9.79 % | Qtr Profit Var | 27.8 % | EPS | 1.29 ₹ | Industry PE | 28.4 |
📊 Chart & Trend: Lemon Tree trades at ₹108, well below its 50 DMA (₹124) and 200 DMA (₹142). This indicates sustained weakness and a bearish trend in both short and medium terms.
📉 Momentum Indicators: RSI at 36.4 shows the stock is nearing oversold territory, hinting at possible support but no strong reversal yet. MACD at -6.24 confirms bearish momentum. Bollinger Bands suggest price is leaning toward the lower band, with support near ₹100.
📈 Volume Trends: Current volume (47 lakh) is lower than the 1-week average (65 lakh), reflecting reduced participation and lack of strong buying interest.
🔑 Entry Zone: ₹100–₹105 (near support and oversold RSI levels).
🚪 Exit Zone: ₹125–₹130 (near resistance and 50 DMA).
📌 Trend Status: The stock is in consolidation with bearish bias, showing weakness across moving averages but potential support emerging near ₹100.
Positive
- Quarterly PAT improved sequentially (₹22.6 Cr → ₹36.4 Cr).
- EPS at ₹1.29 shows earnings growth.
- Debt-to-equity ratio at 0.28 indicates manageable leverage.
- PEG ratio at 0.73 suggests valuation is aligned with growth prospects.
Limitation
- High P/E of 73.8 compared to industry average of 28.4.
- Weak ROCE (11.2%) and ROE (8.33%) show modest efficiency.
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
Company Negative News
- DII holdings decreased (-0.26%), showing reduced domestic institutional interest.
- Stock underperforming with 52-week index at only 9.79%.
Company Positive News
- Sequential PAT growth indicates improving profitability.
- FII stake increased (+0.05%), showing foreign investor confidence.
Industry
- Hospitality sector PE at 28.4, much lower than Lemon Tree’s valuation.
- Sector rotation remains cautious, with valuations stretched in premium hospitality stocks.
Conclusion
⚖️ Lemon Tree is consolidating with bearish short-term signals, trading below key averages. Entry near ₹100–₹105 offers margin of safety, while exits around ₹125–₹130 provide profit-taking opportunities. High valuation and weak efficiency metrics limit upside, but sequential profit growth and manageable debt support long-term resilience.
Would you like me to prepare a peer benchmarking overlay with Indian Hotels, Chalet Hotels, and EIH so you can compare Lemon Tree against sector leaders for rotation clarity?