LTFOODS - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.6

📊 LTFOODS is consolidating near its 200 DMA with neutral momentum indicators and strong volume, suggesting a potential breakout if resistance is cleared.

📊 Technical Analysis

• Trend: The stock is consolidating between its 50 DMA (₹428) and 200 DMA (₹415), indicating indecision with a slight bullish bias.
• Moving Averages: Price is at the 200 DMA and slightly below the 50 DMA, suggesting a neutral setup with potential for upside if it reclaims the 50 DMA.
• RSI (49.7): In the neutral zone, showing balanced momentum with no strong directional bias.
• MACD (-1.70): Slightly negative, indicating mild bearish divergence but flattening trend.
• Bollinger Bands: Price is near the middle band, confirming consolidation and low volatility.
• Volume: Current volume (17.8L) is significantly above 1-week average (7.7L), suggesting accumulation interest.

🎯 Entry & Exit Zones

• Support Zone: ₹405 – ₹415 (200 DMA and recent base)
• Resistance Zone: ₹430 – ₹445 (50 DMA and prior swing highs)
• Optimal Entry: ₹410 – ₹415 (on pullback with RSI holding above 50)
• Exit Target: ₹440 – ₹455 (short-term breakout zone)

✅ Positive

• Strong ROCE (15.5%) and ROE (12.0%) indicate efficient capital deployment.
• EPS of ₹6.01 and PEG ratio of 2.96 reflect growth potential.
• Low debt-to-equity ratio (0.12) suggests financial stability.
• DII holding increased by 1.12%, showing institutional confidence.

⚠️ Limitation

• Price is below 50 DMA and MACD is negative, indicating short-term weakness.
• RSI is neutral, showing lack of strong momentum.
• High P/E (69.1) compared to industry average (20.1) suggests overvaluation.

📉 Company Negative News

• FII holding decreased slightly by 0.03%, indicating cautious foreign sentiment.

📈 Company Positive News

• Quarterly PAT rose from ₹37.0 Cr. to ₹71.2 Cr., a 16.6% YoY increase.
• Strong volume spike suggests renewed investor interest at current levels.

🌾 Industry

• Industry P/E is 20.1, significantly lower than LTFOODS’s, suggesting relative overvaluation.
• Agri-processing and FMCG sectors are defensive and driven by consumption trends and export demand.

🧾 Conclusion

• LTFOODS is currently consolidating with neutral technical indicators and strong volume support.
• Short-term traders should watch for a breakout above ₹428 with volume confirmation.
• Long-term investors may consider accumulating near ₹415 with a target of ₹455, maintaining stop-loss below ₹405.