Scripscan:Lloyds Steel Industries Ltd
BSE code:500254
cmp:11
Story:Lloyds Steel Industries Limited engages in the manufacture and marketing of iron and steel products, capital equipments, and turnkey projects in India. The company’s products include ship sets of steering gears and stabilizers, steel pipes and tubes, silos, marine loading arms/truck and rail loading arms, hot and cold rolled coils/plates/sheets, GP coils/sheets and GC sheets, and power plants. It also engages in the fabrication of chemical, pharmaceutical, and other machinery and steel structurals, as well as provides engineering services.Lloyds Steel has been making losses over the last 4 years and theres more than a chance that it would continue with the same trend for the coming 4 years too.It attracts a marketcap of nearly 250crs and moves with big volumes.For a down and out counter why to pay such a huge lumpsum when there are so many solid counters having sunrising business models quoting at bargain prices? Retail investors with their huge fetish towards the penny priced stock fraternity would make sure that Lloyds Steel on good times quote at near par but to me this is more of a trading bet where one can look to have a position at 5-6rs only to exit at this 10-11 levels.If you are not a trader switch from this sick company to a better growth oriented candidate where capital appreciation as well as a good dividend yield backs you out.
