LT - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.2
| Stock Code | LT | Market Cap | 5,52,179 Cr. | Current Price | 4,014 ₹ | High / Low | 4,440 ₹ |
| Stock P/E | 48.8 | Book Value | 494 ₹ | Dividend Yield | 0.85 % | ROCE | 18.5 % |
| ROE | 17.1 % | Face Value | 2.00 ₹ | DMA 50 | 3,924 ₹ | DMA 200 | 3,847 ₹ |
| Chg in FII Hold | -1.28 % | Chg in DII Hold | 0.33 % | PAT Qtr | 3,471 Cr. | PAT Prev Qtr | 1,212 Cr. |
| RSI | 54.2 | MACD | 69.3 | Volume | 28,18,876 | Avg Vol 1Wk | 22,71,640 |
| Low price | 3,284 ₹ | High price | 4,440 ₹ | PEG Ratio | 2.88 | Debt to equity | 0.27 |
| 52w Index | 63.2 % | Qtr Profit Var | 44.4 % | EPS | 45.3 ₹ | Industry PE | 18.5 |
📈 Chart Patterns: LT is trending upward, trading above both 50 DMA and 200 DMA, showing strong bullish bias with resistance near 4,350–4,400 ₹.
📊 Moving Averages: Price above 50 DMA (3,924 ₹) and 200 DMA (3,847 ₹), confirming short and medium-term strength.
📉 RSI: At 54.2, RSI suggests neutral-to-bullish momentum with room for further upside.
📈 MACD: Positive at 69.3, confirming bullish momentum.
📊 Bollinger Bands: Price near upper band, reflecting strong momentum but risk of short-term consolidation.
📉 Volume Trends: Current volume (28.2L) above weekly average (22.7L), showing strong participation and conviction.
🔑 Short-Term Momentum Signals: Bullish signals supported by MACD, RSI, and strong volume, but valuations remain stretched.
🎯 Entry Zone: 3,950–4,000 ₹ near DMA support.
🎯 Exit Zone: 4,350–4,400 ₹ near resistance cluster.
📌 Trend Status: Trending upward with bullish bias.
Positive
- Strong quarterly PAT growth (+44.4%).
- EPS at 45.3 ₹ supports valuation strength.
- ROCE (18.5%) and ROE (17.1%) highlight efficient capital use.
- Low debt-to-equity ratio (0.27).
- DII holdings increased (+0.33%).
Limitation
- High P/E of 48.8 compared to industry PE of 18.5, indicating premium valuation.
- PEG ratio of 2.88 suggests growth priced at a premium.
- FII holdings declined (-1.28%).
Company Negative News
- Decline in FII holdings (-1.28%) signals reduced foreign investor confidence.
- Premium valuation may limit upside potential.
Company Positive News
- Strong PAT growth (1,212 Cr. → 3,471 Cr.).
- DII inflows (+0.33%) highlight domestic investor confidence.
- Dividend yield of 0.85% adds shareholder value.
Industry
- Industry PE at 18.5, significantly lower than LT’s P/E of 48.8, suggesting premium valuation.
- Sector momentum strong with 52-week index at 63.2%.
Conclusion
LT is trending upward with bullish signals supported by MACD, RSI, and strong earnings growth. Entry near 3,950–4,000 ₹ offers favorable positioning, while exits around 4,350–4,400 ₹ capture resistance levels. Strong fundamentals and efficient capital use support optimism, but stretched valuation and declining FII confidence warrant disciplined profit booking.