LTTS - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | LTTS | Market Cap | 35,599 Cr. | Current Price | 3,360 ₹ | High / Low | 4,752 ₹ |
| Stock P/E | 28.6 | Book Value | 545 ₹ | Dividend Yield | 1.63 % | ROCE | 27.9 % |
| ROE | 21.7 % | Face Value | 2.00 ₹ | DMA 50 | 3,622 ₹ | DMA 200 | 4,112 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.44 % | PAT Qtr | 314 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 47.3 | MACD | -109 | Volume | 2,38,997 | Avg Vol 1Wk | 10,08,359 |
| Low price | 3,010 ₹ | High price | 4,752 ₹ | PEG Ratio | 3.09 | Debt to equity | 0.10 |
| 52w Index | 20.1 % | Qtr Profit Var | 4.54 % | EPS | 115 ₹ | Industry PE | 23.1 |
📈 Chart & Trend: The stock is trading below both its 50 DMA (3,622 ₹) and 200 DMA (4,112 ₹), showing medium-term weakness. Current price (3,360 ₹) is closer to its 52-week low (3,010 ₹) than the high (4,752 ₹), reflecting consolidation after a correction.
📊 Momentum Indicators: RSI at 47.3 indicates neutral-to-weak momentum. MACD at -109 confirms bearish bias. Bollinger Bands suggest price leaning toward the lower band, consistent with consolidation under pressure.
🔎 Volume Trends: Current volume (2.38 lakh) is significantly lower than the 1-week average (10.08 lakh), showing reduced participation and lack of strong buying interest.
💡 Entry Zone: 3,300–3,360 ₹ (near support at 3,010 ₹, offering tactical entry)
💡 Exit Zone: 3,600–3,700 ₹ (resistance near 3,622 ₹, aligning with 50 DMA)
📌 Trend Status: The stock is consolidating with bearish undertones, not yet reversing.
Positive
- Strong ROCE (27.9%) and ROE (21.7%) highlight excellent capital efficiency.
- Low debt-to-equity (0.10) indicates a very healthy balance sheet.
- Dividend yield of 1.63% provides income support.
- EPS of 115 ₹ reflects solid profitability.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- High P/E (28.6) compared to industry P/E (23.1), making valuation expensive.
- PEG ratio (3.09) suggests growth is overpriced relative to earnings.
- FII holding decreased (-0.45%), showing reduced foreign investor confidence.
Company Negative News
- Stock corrected from 4,752 ₹ to 3,360 ₹, eroding investor wealth.
- MACD negative and RSI below 50 confirm weak momentum.
Company Positive News
- DII holding increased (+0.44%), showing domestic institutional support.
- Quarterly profit growth (+4.54%) highlights operational improvement.
Industry
- Industry P/E (23.1) is lower than company P/E (28.6), suggesting sector peers trade at more reasonable valuations.
- 52-week industry index return of 20.1% shows moderate sector performance.
Conclusion
⚖️ LTTS is consolidating with bearish undertones, trading below key moving averages. Fundamentals like ROCE, ROE, and EPS are supportive, but valuation is stretched and momentum indicators remain weak. Tactical strategy: accumulate near 3,300–3,360 ₹ with strict stop-loss below 3,010 ₹, and book profits around 3,600–3,700 ₹. Sustained recovery requires crossing 3,622–4,112 ₹ resistance zones.
Would you like me to extend this into a peer benchmarking overlay against other IT engineering and technology service companies? That would help clarify whether LTTS’ valuation premium is justified compared to sector peers.