Lloyds Steels shares slip 9% from one-year high; time to buy, sell or hold?

Shares of Lloyds Steels Industries Ltd settled 4.31 per cent lower at Rs 45.98 on Wednesday, pausing their four-day steep climb. The stock, which scaled its 52-week high of Rs 50.78 in the previous session, slipped today in line with a weak trend in the domestic equity benchmarks. Considering today's closing price of Rs 45.98, the scrip has declined 9.45 per cent from the one-year high price. That said, the multibagger counter has gained 109.48 per cent in the last six months and 159.77 per cent on a year-to-date (YTD) basis. The company has recently changed its name from Lloyds Steels to Llyods Engineering Works Ltd. It is scheduled to declare its June 2023 quarter results on August 7.

On technical setup, an analyst suggested that support on the counter could be seen at Rs 42, while another said investor should wait for fresh entry as the stock price has moved "quite fast" over the last few days.

AR Ramachandran from Tips2trades said, "The stock looked bullish but also overbought on the daily charts with next resistance at Rs 46.80. A daily close below support of Rs 42 could lead to target of Rs 35.50 in the near term."

Milan Sharma, Founder and CEO at 35North Ventures, said, "Lloyds Steels has shown a remarkable improvement in its financial all last few quarters both in revenues and profits. RoE of 18 per cent is quite remarkable and if the same trend continues, we believe that the share will be up for re-rating. The stock price has moved up quite fast over the last few days. So, it is better to wait for fresh entry."

Bourses BSE and NSE have put the securities of Lloyds Steels under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The counter's 14-day relative strength index (RSI) came at 78.85. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 140.78 against a negative price-to-book (P/B) value of 26.55.

The scrip has a one-year beta of 1.34, indicating high volatility.

Separately, Lloyds Metals and Energy Ltd plunged 4.03 per cent to close at Rs 622.

Meanwhile, Indian equity benchmarks fell sharply today amid a sell-off seen across all sectors, tracking global indices. The 30-share BSE Sensex pack dived 677 points or 1.02 per cent to close at 65,783, while the broader NSE Nifty pack moved 207 points or 1.05 per cent to end the day at 19,527.