Shares of this multibagger stock under the ‘micro-cap’ category jumped approximately 6 percent in Thursday’s trading session after the company received approval from the “Ministry of Home Affairs”, Government of India for the commencement of commercial production for the manufacturing as well as proof-test of Firearms.
With a market capitalization of Rs 831.89 crores, the stocks of Lokesh Machines Limited opened their trading hour on Thursday at Rs 428.95 and closed the session at Rs 449.75, gaining a whopping 6.50 percent compared to the previous close of Rs 422.90.
Such sharp stock price movements were witnessed today after the company received approval from the “Ministry of Home Affairs”, Government of India for the commencement of commercial production for the manufacturing as well as proof-test of Firearms under Form VII license.
Having a glance at the latest financials, the company’s prime business indicators, viz, its operating revenues as well as after-tax profits, increased in numbers.
The former rose from Rs 76.42 crores during the September 2023 quarter to Rs 86.49 crores during the December 2023 quarter, and the latter, keeping the time horizon the same, took an upward shift from Rs 3.29 crores to Rs 5.11 crores.
In addition to the above, the company’s standalone ratio analysis portrays the return ratios reported at decent numbers with the return on equity (RoE) reported at 6.08 percent and the return on capital employed (RoCE) at 12.23 percent.
Keeping a purview of the last one year, the company’s stock delivered multibagger returns of around 295 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3.95 lakhs.
Founded in 1983, Lokesh Machines Limited is engaged in the business of manufacturing machine tools and other associated components. The company’s product portfolio includes CNC machines, special-purpose machines, auto components, jigs & fixtures, and many more. The ‘Machine’ division is the major revenue contributor for the company.
Written by Amit Madnani
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