LTTS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | LTTS | Market Cap | 39,969 Cr. | Current Price | 3,768 ₹ | High / Low | 5,647 ₹ |
| Stock P/E | 32.1 | Book Value | 545 ₹ | Dividend Yield | 1.46 % | ROCE | 27.9 % |
| ROE | 21.7 % | Face Value | 2.00 ₹ | DMA 50 | 4,192 ₹ | DMA 200 | 4,361 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.44 % | PAT Qtr | 314 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 30.6 | MACD | -179 | Volume | 36,312 | Avg Vol 1Wk | 53,714 |
| Low price | 3,700 ₹ | High price | 5,647 ₹ | PEG Ratio | 3.47 | Debt to equity | 0.10 |
| 52w Index | 3.51 % | Qtr Profit Var | 4.54 % | EPS | 115 ₹ | Industry PE | 25.7 |
📊 Chart Patterns & Trend: The stock is trading at ₹3,768, well below its 50 DMA (₹4,192) and 200 DMA (₹4,361), reflecting strong bearish pressure. Price action is near the lower end of its 52-week range (₹3,700–₹5,647), 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 ₹4,192 would be the first bullish signal, while sustaining above ₹4,361 would confirm reversal.
📉 RSI: At 30.6, RSI is in oversold territory, indicating potential for a short-term rebound if buying interest emerges.
📉 MACD: Deeply negative at -179, showing strong 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 ₹3,900–₹4,050.
📊 Volume Trends: Current volume (36,312) is lower than average weekly volume (53,714), showing reduced participation and lack of strong breakout signals.
🎯 Entry Zone: ₹3,700–₹3,780 (near support and oversold RSI).
🎯 Exit Zone: ₹4,150–₹4,250 (near resistance and 50 DMA).
📌 Trend Status: Bearish with consolidation signs. A reversal may occur if RSI rebounds and price sustains above ₹3,900–₹4,200.
Positive
- Strong ROCE (27.9%) and ROE (21.7%) highlight excellent capital efficiency.
- Dividend yield of 1.46% provides steady income for investors.
- EPS at ₹115 remains robust compared to peers.
- Quarterly PAT improved to ₹314 Cr from ₹307 Cr, showing earnings growth.
Limitation
- Stock P/E (32.1) is higher than industry PE (25.7), indicating premium valuation.
- Price trading below both 50 DMA and 200 DMA confirms weak momentum.
- PEG ratio (3.47) suggests valuation is stretched relative to growth.
- Volume activity below average indicates weak investor participation.
Company Negative News
- FII holdings decreased (-0.45%), showing reduced foreign investor confidence.
Company Positive News
- DII holdings increased (+0.44%), reflecting domestic institutional support.
- Quarterly profit growth (+4.54%) indicates improving fundamentals.
Industry
- Industry PE at 25.7 is lower than the stock’s P/E, suggesting sector trades at more reasonable valuations.
- Despite premium valuation, LTTS maintains strong fundamentals with high ROCE and ROE.
Conclusion
⚖️ LTTS is currently in a bearish phase, trading below key moving averages with weak momentum indicators. However, oversold RSI and strong fundamentals provide potential for a short-term rebound. Entry near ₹3,700–₹3,780 offers favorable risk-reward, while exits around ₹4,150–₹4,250 align with resistance. Sustained buying and a move above ₹4,192–₹4,361 would confirm reversal toward bullish momentum.