Lokesh Machines shares close at fresh 52-week high; here’s why

Shares of Lokesh Machines Ltd hit a fresh 52-week high today after the machine tools manufacturer said it has received an initial licence for manufacturing of small arms from the home ministry.

Lokesh Machines stock ended 20% higher at Rs 185.85, a fresh 52-week high on BSE. The stock has gained 24.52% in three sessions. It opened higher at Rs 155.25 against the previous close of Rs 154.90.

A total of 0.90 lakh shares of the firm changed hands amounting to a turnover of Rs 1.57 crore in the current trading session. Market cap of the firm rose to Rs 332.61 crore on BSE. Lokesh Machines shares have risen 152% in a year and gained 76.24% in 2023.

In terms of technicals, the relative strength index (RSI) of Lokesh Machines stands at 57.4, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 0.7, indicating low volatility in a year. Shares of Lokesh Machines are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

“In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBT Listing Regulatfons"), we hereby inform you that afrom the Ministry of Home Affairs, New Delhi, stating that the Initial License (Form VIJ) for Manufacturing of Small Arms has been granted to Lokesh Machines Limited, subject to payment of applicable fees,” said the company in a communication to bourses.

Lokesh Machines reported a 9.23% rise in standalone profit after tax (PAT) to Rs 2.96 crore for the March 2023 quarter against a net profit of Rs 2.71 crore in the corresponding quarter of the previous fiscal. Revenue from operations gained 2.74% YoY to Rs 67 crore in Q4 FY23 compared to Rs 65.21 crore in Q4 FY22.

Lokesh Machines is engaged in the business of manufacture of special purpose machines (SPM), general purpose machines/CNC Lathes (GPM), connecting rods and machining of cylinder blocks and heads.

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