Is This A Good Time To Buy L&T Technology Services ?

June 29 2021

L&T Technology Services stock has cleared a 10-week, 19% deep Cup With Handle Base this week. Currently, the stock is trading around just 1% away from its ideal buy price of INR 2910. The stock is offering investors an opportunity to get on board at the current price.

 

The stock closed in green for the week, but the volume remained below average. It was up 4.7% on a -17% lower volume than the 10-week average. It will be interesting to see how the stock behaves in the coming week. You would want to see the price volume momentum to pick up in the coming trading sessions.

 

The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 8.1% away from the 10-week moving average.

In the last twelve months, L&T Technology Services has rallied nearly 125.8% as compared to 53.5% for the Nifty500. It has a Relative Strength Rating of 56. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.

The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If L&T Technology Services can maintain this outperformance, it could make sense as a CANSLIM trade.

 

Another key part of the jigsaw is institutional sponsorship. L&T Technology Services has an Accumulation/Distribution Rating of 'A-'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.

 

On the earnings front, L&T Technology Services has an EPS Rank of 61, which is okay but fails to impress a growth stock investor. The earnings and sales for the stock have grown by 5% and 12%, respectively over the past three years. Its 3-years earnings stability is 12, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 14% and 16%, respectively. The 5-years earnings stability is 14. The return on equity for the last reported year is 21%.

 

The stock belongs to the industry group of Computer-Tech Services. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 105 . The current price of L&T Technology Services is -6% off from its 52-week high price and 127% above its 52-week low price.

 

The stock appears on our idea lists: Minervini Trend Template.

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