Once a penny stock, shares of Lloyds Metals And Energy have given extraordinary returns to its investors in the long term surging almost 9,500 percent since April 2020. It jumped from ₹4 to ₹393.65 current, soaring as much as 9,455 percent.
An investment of ₹1,00,000 in April 2020 would have turned to ₹95.5 lakh currently.
The stock has given multi-bagger returns even in the last one year, rallying 182 percent in this period. Meanwhile, it has advanced over 60 percent in 2023 YTD, giving positive returns in 4 of the 6 months in the current calendar year.
The stock has surged 23 percent just in June after a 1 percent fall in May. Meanwhile, it advanced 13.5 percent in April and was up 1 percent in March. However, it lost 3.6 percent in Feb but jumped over 18 percent in January.
Lloyds Metals & Energy, incorporated in the year 1977, is in the business of manufacturing of Sponge Iron, Power generation, and mining activities. The company set up India’s first private-sector Steel Plant in Wardha.
In the March quarter, the company's net profit more than doubled, up 118 percent to ₹269.04 crore versus ₹123.37 crore in the year-ago quarter. Meanwhile, its revenue also surged 163 percent to ₹876.25 crore in the quarter under review versus ₹333.21 crore in the same period last year.
As per March quarter shareholding data, public shareholders held a 34.25 percent stake in the firm while promoters of the firm held a 65.75 percent stake.
Despite the stellar return, it is important to note that penny stocks are high-risk stocks and not suitable for investors with a risk-averse approach. Only high-risk investors should invest in such stocks and in very small weightage. Please consult your financial advisor before making any changes to your portfolio.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.