Lokesh Machines Share Price Rose 4.48% on Arms License

Lokesh Machines share price surge by over 10% in early trading on Thursday after the announcement of receiving an Arms Licence from the Ministry of Home Affairs. The stock initially rose to a high of ₹395.00 on the BSE, marking a gain of 10.7%. Currently, Lokesh Machines is trading up some by 4.69% at ₹372.90 as of 1:33 pm.

License Details

In a regulatory filing, Lokesh Machines disclosed that it has been granted an Arms License in Form VII by the Government of India. This license permits the company to engage in the manufacture and In House Proof testing of small arms. The announcement caused Lokesh Machines shares to reach a peak of ₹395.00 on the BSE.

With the acquisition of this license, Lokesh Machines is poised to diversify its product portfolio. It enables the company to manufacture Assault Rifles, Pistols and Rifles of various calibers, in addition to conducting Proof tests and firing of small arms at its In house facility.

Lokesh Machines Stock & Financial Performance

The small cap stock, Lokesh Machines share has faced substantial growth, with its market capitalization surpassing ₹710 crore. Over the past year, the company's shares have delivered remarkable returns, surging by over 253.63% and an astonishing 1,101% over three years. Notably, in just one week Lokesh Machines shares have seen an increase of over 22%.

In the quarter ended December 2023, Lokesh Machines reported a net profit of ₹5.11 crore, marking a growth of 41.79% from the corresponding period of the previous year of ₹3.60 cr. Revenue from operations during Q3FY24 witnessed a robust increase of 37.45% year on year, reaching ₹86.49 crore. Machines Division contributed ₹60.02 crore to the revenue, while the Components Division accounted for ₹26.47 crore.

At the operating level, Lokesh Machines demonstrated strong performance, with its EBITDA jumping by 57.89% during the quarter reaching ₹13.31 crore compared to ₹8.43 crore in the same period last year.

Lokesh Machines is a prominent player in the machine tool manufacturing sector in India. Its clientele includes auto OEMs, general industries and export, auto ancillaries with approximately 20%, 20%, and 60% of supplies respectively. The company operates from six locations in Hyderabad and Pune and exports CNC machines to several countries including Germany, Japan and Russia.

To Summarize

As of 1.33 pm, Lokesh Machines shares were trading 4.69% higher at ₹372.90 on BSE, reflecting the positive market sentiment surrounding the company's growth prospects after the acquisition of the Arms License.