LTF - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 4.0

📊 Chart Patterns & Trend: LTF is trading above both its 50 DMA (287 ₹) and 200 DMA (231 ₹), showing strong bullish momentum. Price action suggests the stock is in a trending phase near its 52-week high (315 ₹).

📈 Moving Averages: Current price (301 ₹) is comfortably above both 50 DMA and 200 DMA, confirming an uptrend. Resistance lies around 310–315 ₹.

📉 RSI: At 51.6, RSI is neutral, suggesting balanced momentum with room for further upside.

📈 MACD: Positive at 4.07, confirming bullish momentum and signaling continuation of the uptrend.

📊 Bollinger Bands: Price is near the upper band, reflecting strong buying interest but also caution for short-term volatility.

📉 Volume Trends: Current volume (48,60,728) is higher than average weekly volume (38,56,812), showing strong participation and conviction in the rally.

🎯 Entry Zone: 285–295 ₹ (near 50 DMA support).

🎯 Exit Zone: 310–315 ₹ (near resistance and 52-week high).

⚡ Momentum: Strong, with bullish signals and trending behavior.

Positive

• Quarterly PAT growth (728 Cr vs 694 Cr) shows steady earnings improvement.
• EPS at 10.7 ₹ supports earnings visibility.
• FII (+0.21%) and DII (+0.23%) holdings increased, showing institutional confidence.
• PEG ratio of 0.22 suggests attractive growth-adjusted valuation.

Limitation

• High debt-to-equity ratio (3.76) raises financial risk concerns.
• ROCE at 8.70% is relatively weak compared to peers.
• High P/E ratio (28.2) compared to industry average (21.2), suggesting premium valuation.

Company Negative News

• High leverage (Debt-to-equity 3.76) could impact long-term stability.
• ROCE remains weak despite profit growth, showing efficiency concerns.

Company Positive News

• Quarterly PAT growth of 5.6% highlights steady operational performance.
• EPS growth and institutional support (FII & DII stake increase) strengthen fundamentals.

Industry

• Industry PE at 21.2 is lower than LTF’s PE (28.2), showing premium valuation.
• Financial services sector demand remains strong, supported by credit growth and rising profitability.

Conclusion

⚖️ LTF is currently in a strong uptrend, trading above key moving averages with bullish MACD and neutral RSI. Entry opportunities lie near 285–295 ₹, with resistance around 310–315 ₹. Fundamentally supported by profit growth and institutional confidence, but technically cautious due to high debt levels and weak ROCE. Best suited for medium-to-long term investors; traders can capitalize on momentum while monitoring resistance levels.