Shares of Lokesh Machines Ltd locked a 20 percent upper circuit on Thursday’s first half of the session and touched a 52 weeks-high price of Rs 186 from the previous close price of Rs 154.95.
The stock skyrocketed after the company received a license from the Ministry of Home Affairs, New Delhi.
As per the BSE filing, the Company received an Initial Licence to Manufacturer Small Arms from the Ministry of Home Affairs.
The stock climbed by 70.80 percent on the year-to-date basis from Rs 108.90 to current levels, while it grew by 152.55 percent in the previous year from Rs 73.65 to current values. If an investor bought 1 lakh shares, their holdings would be worth 2.52 lakhs in a year.
Lokesh Machines Limited was incorporated in 1983. The company is engaged in the business of manufacturing Lathe machines, connecting rods, and cylinder blocks. The company is one of the top five machine tool manufacturers in the Country.
In February 2023, the Company signed a Memorandum of Understanding with the Ministry of Defence’s Advanced Weapons & Equipment India Ltd and the Government of India’s Armament Research & Development Establishment, DRD
According to the company’s financials, revenues climbed marginally by 19 percent year on year, from Rs 201 crores in FY 21-22 to Rs 240 crores in FY 22-23. Within the same timeframe, Net profit increased by 50 percent, from Rs 6 crores to Rs 9 crores.
Over the years, the company’s margins have increased, with the net profit margin at 4.02 percent, the operating margin at 9.84 percent, and the debt-to-equity ratio standing at 0.55.
As per the latest shareholding pattern, promoters of the company hold a 53.05 percent stake and Domestic Institutional Investors (DIIs) hold a 2.07 percent stake in the company for FY 22-23.
Written by Omkar C
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