Multibagger metal stock rises over 9%, hits record high; here's why 

Shares of Lloyds Metals and Energy hit their record high on Friday ater brokerage Anand Rathi initiated coverage on the multibagger stock with a buy call. It has assigned a price target of Rs  1260, 30% over the previous close of Rs 970 on BSE. In the current session, the stock rose 9.58% to hit a record high of Rs 1061.25 on BSE.

Later, the metal stock closed 7.44% higher at Rs 1040.50 on BSE. Market cap of the firm stood at Rs 54,398 crore. Total 1.15 lakh shares changed hands amounting to a turnover of Rs 11.83 crore on BSE.

Lloyds Metals shares have rallied 97.85% in a year. In two years, the stock has gained 510%.

The relative strength index (RSI) of Lloyds Metals stood at 53.2, signaling it's trading neither in the overbought nor in the oversold zone.

The metal sector stock has a one-year beta of 1.2, signaling high volatility during the period.

The metal stock stands higher than the 5 day, 10 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages indicating that the stock is trading in a bullish zone.

"Considering the company’s focus on integrating the steel value chain, increasing capacity, exemption from paying additional premium, strategic mine locations near steel manufacturing hubs of nearby states, we expect a strong momentum ahead. We expect the company to outpace the sector, with a 65% EBITDA CAGR over FY24-27. We initiate coverage on the stock with a Buy and a sum-of-parts target price of Rs 1,260," said Anand Rathi.

Key risks to its assumptions are delays in receipt of environmental clearance and capex execution; fluctuations in iron ore prices and operational risks in the Naxalite zone,said the brokerage.

Lloyds Metals & Energy is engaged in mining iron ore, manufacturing coal-based Direct Reduced Iron (DRI)/(Sponge Iron) and generating power.