LTTS - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 4.2

📊 Chart Patterns & Trend: LTTS is trading above both its 50 DMA (4,369 ₹) and 200 DMA (4,420 ₹), showing bullish momentum. Price action suggests the stock is in a trending phase with resistance near its 52-week high (5,647 ₹).

📈 Moving Averages: Current price (4,511 ₹) is above both 50 DMA and 200 DMA, confirming an uptrend. Resistance lies around 4,600–4,700 ₹ in the short term.

📉 RSI: At 56.6, RSI is neutral-to-positive, suggesting healthy momentum without being overbought.

📈 MACD: Strongly positive at 88.9, 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 (68,912) is higher than average weekly volume (47,912), showing strong participation and conviction in the rally.

🎯 Entry Zone: 4,400–4,450 ₹ (near 50 DMA support).

🎯 Exit Zone: 4,600–4,700 ₹ (short-term resistance).

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

Positive

• Strong ROCE (27.9%) and ROE (21.7%) indicate excellent efficiency and profitability.
• EPS at 116 ₹ highlights robust earnings power.
• Dividend yield of 1.19% provides shareholder returns.
• DII holdings increased (+0.27%), showing domestic institutional confidence.
• Low debt-to-equity ratio (0.10) ensures financial stability.

Limitation

• High PEG ratio (4.20) suggests expensive growth-adjusted valuation.
• Quarterly PAT flat (307 Cr vs 308 Cr), showing limited earnings momentum.
• FII holdings decreased (-0.17%), reflecting reduced foreign investor confidence.
• Stock P/E (38.9) is higher than industry average (31.6), indicating premium valuation.

Company Negative News

• Flat quarterly PAT performance indicates stagnation in near-term earnings growth.
• FII stake reduction (-0.17%) shows declining foreign investor interest.

Company Positive News

• EPS strength and strong ROCE/ROE metrics highlight operational efficiency.
• DII stake increase (+0.27%) shows confidence from domestic institutions.
• Dividend yield supports long-term investor confidence.

Industry

• Industry PE at 31.6 is lower than LTTS’s PE (38.9), showing premium valuation.
• IT services and engineering R&D sector demand remains strong, supported by digital transformation and global outsourcing trends.

Conclusion

⚖️ LTTS is currently in a strong uptrend, trading above key moving averages with bullish MACD and neutral RSI. Entry opportunities lie near 4,400–4,450 ₹, with resistance around 4,600–4,700 ₹. Fundamentally strong with high ROCE/ROE, EPS growth, and low debt, but technically cautious due to premium valuation and flat PAT growth. Best suited for medium-to-long term investors; traders can capitalize on momentum while monitoring resistance levels.