Multibagger Lloyds Steels shares zoom 20% today to hit 52-week high; more steam left?

Shares of Lloyds Steels Industries Ltd continued their upward march for the third straight session in Monday's trade. The stock surged 20 per cent to hit a 52-week high of Rs 46.17. The multibagger stock has gained 160.85 per cent in 2023 so far and 180.67 per cent in the past one year. The company has recently changed its name from Lloyds Steels to Llyods Engineering Works Ltd.

"All the shareholders are hereby informed that the share certificates of the company with old name i.e. Lloyds Steels Industries Ltd not in line with the new approved name i.e. Lloyds Engineering Works Ltd shall also be considered good for delivery in the market in accordance with the SEBI Guidelines for Good and Bad Delivery of documents," a company statement read.

On the technical front, support on the counter could be seen around Rs 39 level. 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.

Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, "Lloyds Steel has been in positive terrain for the financial year and hovers well above all the EMAs (Exponential Moving Averages) on the daily chart. The counter has witnessed a huge price spurt in the last couple of trading sessions, leading it to new highs. Amidst the recent stellar rally, one should avoid being complacent and wait for some cool-off in the counter. On the levels front, the bullish gap around Rs 39-odd zone is likely to act as a support zone, and one should have a pragmatic approach to trade in the counter."

AR Ramachandran from Tips2trades said, "Lloyds Steels is bullish but also overbought on the daily charts with next resistance at Rs 46.80. A daily close below support of Rs 38.45 could lead to target of Rs 31.70 in the near term."

The counter's 14-day relative strength index (RSI) came at 65.12. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-earnings (P/E) ratio of 0.55 against a negative price-to-book (P/B) value of 0.03.

The scrip has a one-year beta of 0.27, indicating low volatility.

Meanwhile, Indian equity benchmarks traded higher in afternoon deals today, led by gains in technology, metals, energy and automobile stocks.

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