LTFOODS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.4

📊 Chart Patterns & Trend: LTFOODS is trading slightly below both its 50 DMA (408 ₹) and 200 DMA (411 ₹), showing weakness. Price action suggests the stock is in a consolidation phase after correcting from highs (519 ₹).

📈 Moving Averages: Current price (400 ₹) is marginally below both 50 DMA and 200 DMA, indicating resistance around 408–411 ₹.

📉 RSI: At 46.2, RSI is neutral-to-weak, suggesting limited momentum and potential sideways movement.

📉 MACD: Negative at -5.24, confirming mild bearish momentum and lack of strong buying signals.

📊 Bollinger Bands: Price is near the mid-to-lower band, indicating consolidation with weak volatility expansion.

📉 Volume Trends: Current volume (2,62,301) is significantly below average weekly volume (5,38,548), showing reduced participation and weak conviction in recent moves.

🎯 Entry Zone: 385–395 ₹ (near support levels).

🎯 Exit Zone: 408–411 ₹ (resistance at DMA levels).

⚡ Momentum: Neutral-to-weak, with consolidation and mild bearish bias.

Positive

• Quarterly PAT growth (71.2 Cr vs 37.0 Cr) shows strong earnings improvement.
• ROCE (15.5%) and ROE (12.0%) indicate decent efficiency and profitability.
• DII holdings increased (+1.12%), showing domestic institutional support.
• Low debt-to-equity ratio (0.12) ensures financial stability.

Limitation

• Stock trading below both 50 DMA and 200 DMA, signaling weakness.
• RSI at 46.2 shows neutral-to-weak momentum.
• MACD negative, confirming bearish trend continuation.
• High P/E ratio (66.6) compared to industry average (20.1), indicating overvaluation.
• PEG ratio at 2.85 highlights expensive growth-adjusted valuation.

Company Negative News

• FII holdings decreased (-0.03%), showing reduced foreign investor confidence.
• Stock corrected from 52-week high (519 ₹ to 400 ₹), reflecting investor caution.

Company Positive News

• Quarterly PAT growth of 16.6% highlights strong operational performance.
• DII stake increase (+1.12%) shows confidence from domestic institutions.
• Low debt levels provide financial stability.

Industry

• Industry PE at 20.1 is much lower than LTFOODS’s PE (66.6), showing premium valuation.
• Food processing and FMCG sector demand remains strong, supported by rising consumption and exports.

Conclusion

⚖️ LTFOODS is currently in a consolidation phase with mild bearish bias. Short-term momentum is weak, with entry opportunities near 385–395 ₹ and resistance around 408–411 ₹. Fundamentally supported by profit growth, ROCE/ROE efficiency, and low debt, but technically cautious due to weak RSI, MACD, and moving averages. Best suited for long-term investors; traders should wait for breakout confirmation before entry.