LTFOODS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | LTFOODS | Market Cap | 12,570 Cr. | Current Price | 361 ₹ | High / Low | 519 ₹ |
| Stock P/E | 59.2 | Book Value | 52.6 ₹ | Dividend Yield | 0.83 % | ROCE | 15.5 % |
| ROE | 12.0 % | Face Value | 1.00 ₹ | DMA 50 | 381 ₹ | DMA 200 | 402 ₹ |
| Chg in FII Hold | -1.20 % | Chg in DII Hold | 1.29 % | PAT Qtr | 66.2 Cr. | PAT Prev Qtr | 71.2 Cr. |
| RSI | 45.4 | MACD | -7.94 | Volume | 2,18,194 | Avg Vol 1Wk | 4,27,393 |
| Low price | 288 ₹ | High price | 519 ₹ | PEG Ratio | 2.53 | Debt to equity | 0.12 |
| 52w Index | 31.6 % | Qtr Profit Var | 6.28 % | EPS | 6.12 ₹ | Industry PE | 21.3 |
📊 Chart Patterns & Trend: The stock is trading at ₹361, below both its 50 DMA (₹381) and 200 DMA (₹402), reflecting bearish pressure. Price action is closer to the lower end of its 52-week range (₹288–₹519), suggesting weak momentum and consolidation near support levels.
📈 Moving Averages: Current price is below both 50 DMA and 200 DMA, confirming downward momentum. A recovery above ₹381 would be the first bullish signal, while sustaining above ₹402 would confirm reversal.
📉 RSI: At 45.4, RSI is in the neutral zone, indicating consolidation. A move above 50 would signal strengthening momentum.
📉 MACD: Negative at -7.94, showing bearish divergence. Trend remains weak until MACD narrows toward zero.
📊 Bollinger Bands: Price is near the lower band, suggesting limited downside and potential mean reversion toward ₹375–₹390.
📊 Volume Trends: Current volume (2.18 Lakh) is lower than average weekly volume (4.27 Lakh), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹350–₹365 (near support and lower Bollinger band).
🎯 Exit Zone: ₹385–₹400 (near resistance and moving averages).
📌 Trend Status: Bearish with consolidation signs. A reversal may occur if RSI rebounds and price sustains above ₹381–₹402.
Positive
- ROCE (15.5%) and ROE (12%) highlight moderate efficiency.
- Low debt-to-equity ratio (0.12) ensures financial stability.
- Dividend yield of 0.83% provides steady income for investors.
- DII holdings increased (+1.29%), reflecting strong domestic institutional support.
Limitation
- Stock P/E (59.2) is significantly higher than industry PE (21.3), indicating overvaluation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (2.53) suggests valuation is stretched relative to growth.
- Volume activity below average indicates weak investor participation.
Company Negative News
- Quarterly PAT declined to ₹66.2 Cr from ₹71.2 Cr, showing earnings pressure.
- FII holdings decreased (-1.20%), showing reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+1.29%), showing strong domestic institutional support.
- Quarterly profit growth (+6.28%) compared to prior year indicates improving fundamentals.
Industry
- Industry PE at 21.3 is much lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- LTFOODS trades at a premium but maintains moderate fundamentals with ROCE and ROE support.
Conclusion
⚖️ LTFOODS is currently in a bearish phase, trading below key moving averages with weak momentum indicators. Entry near ₹350–₹365 offers favorable risk-reward, while exits around ₹385–₹400 align with resistance. Sustained buying and a move above ₹381–₹402 would confirm reversal toward bullish momentum, while failure to hold support could extend bearish consolidation.