Aerospace and Defence Company Secures Form VII License for Manufacturing Fixed/Towed Heavy Machine Guns Up to 30mm!

The company’s shares have delivered an impressive multibagger return of over 200 per cent to its shareholders.

This Small-Cap company has received notification from the Department for Promotion of Industry and Internal Trade, Government of India, New Delhi, stating that the Licensing Committee has recommended granting a license to Lokesh Machines Limited under the Arms Act, 1959, in Form VII. This license authorizes the manufacture of Fixed/Towed Heavy Machine Guns with calibers ranging from above 12.7mm to up to 30mm.

Incorporated in 1983, Lokesh Machines manufactures special-purpose machines, general-purpose machines/CNC lathes, and connecting rods, and provides machining for cylinder blocks and heads.

Today, the shares of Lokesh Machines closed the day at around Rs 376.25 per share on the BSE. The company’s current market capitalization stands at Rs 695.94 crore. Additionally, the shares have delivered an impressive multibagger return of around 580 per cent in the past 3 years.

As per the Quarterly Results, in Q1 FY24, Lokesh Machines recorded a revenue of Rs 62.53 crore compared to Rs 50.30 crore. The operating profit stood at Rs 8.04 crore. The net profit stood at Rs 1.03 crore compared to a profit of Rs 0.76 crore. Looking at the annual performance, the company generated a revenue of Rs 293 crore in FY24. The operating profit for FY24 was Rs 40 crore with an operating profit margin of 14 per cent and a net profit of Rs 14 crore.

According to the shareholding pattern of the company, the promoters hold a significant 50.76 per cent stake. Public investors own 49.04 per cent of the shares while FIIs own a 0.21 per cent stake in the company.

Check out my recent article here.

Investors must keep this small-cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.