Following the company’s announcement that it had received an arms licence from the Ministry of Home Affairs, Lokesh Machines’ share price increased by more than 10% in early trading on Thursday. On the BSE, Lokesh Machines shares increased by 10.7% to a peak of ₹395.00 a share.
The Ministry of Home Affairs, Government of India, has issued the Arms License in Form VII for the production and In-House Proof testing of small arms, according to a regulatory filing made by Lokesh Machines on Wednesday.
“Subject to the receipt of commercial license. This will extend our existing product portfolio and enable us to manufacture Pistols, Assault Rifles and Rifles of various calibers and to conduct the Proof test and firing of small arms at our In-house facility.”
Lokesh Machines
Following the license’s acquisition, the market capitalization of the small-cap firm Lokesh Machines surged to almost ₹710 crore.
With the stock rising more than 270% in the last year and a startling 1,150% in the last three years, Lokesh Machines shares have produced multibagger returns. Lokesh Machines’ stock has increased by more than 27% in just one week.
One of the leading producers of machine tools in the nation is Lokesh Machines. According to the company, 20% of its machines are provided to auto OEMs, 60% to auto ancillaries, and 20% to general industries and exports.
It has six locations in Hyderabad and Pune from which it works. The company ships CNC equipment to Russia, Germany, the Netherlands, Italy, Japan, and Turkey.
For the quarter that ended in December 2023, Lokesh Machines reported a net profit of ₹5.11 crore, up 41.79% from ₹3.60 crore in the same period the previous year.
In Q3FY24, the company’s operating revenue rose 37.45% year over year (YoY) to ₹86.49 crore from ₹62.92 crore. For the third quarter, its income came from the Machines Division, which brought in ₹60.02 crore, and the Components Division, which brought in ₹26.47 crore.
Operating profits before interest, tax, depreciation, and amortization (EBITDA) increased by 57.89% to ₹13.31 crore during the quarter from ₹8.43 crore, YoY.
Lokesh Machines’ stock was up 8.34% at ₹386.60 per share on the BSE at 9:55 a.m.
