Lokesh Machines Shares Soar 20% on License Approval for Small Arms Manufacturing
Lokesh Machines shares rose by 20% on Thursday, June 15, reaching a new one-year high. The surge in the company’s shares comes after it received a license to manufacture small arms. The stock touched a new high of INR 185.85, and at the time of writing, there were around 88,653 buy orders pending, with no shares available for sale.
In a statement to the stock markets, Lokesh Machines said it had received a letter from India’s Ministry of Home Affairs informing it that it had been granted a preliminary license (Form VIJ) to manufacture small arms. The company now needs to pay the prescribed fee to obtain the license. However, it has not yet received a copy of the license, and it will inform stock exchanges once it has received the same.
Over the past year, Lokesh Machines shares have risen by more than 150%. This year, the company’s stock has already risen by almost 70%. In the last month, the shares have seen a surge of 18.51%.
Lokesh Machines has six manufacturing plants, with five in Hyderabad and one in Pune. The company mainly operates in two segments – machines and components. Its products include CNC lathes, vertical machining centers, horizontal machining centers, vertical turning centers, special purpose milling machines, line boring machines, and gun drilling machines, among others.
In the quarter ended March 2021, the company’s net profit rose by 9% to INR 2.96 crore, compared to INR 2.71 crore in the same quarter of the previous fiscal year. The company’s revenue in the same quarter was INR 67 crore, up 2.74% from INR 65.21 crore in the same quarter of the previous fiscal year.
The license approval for small arms manufacturing is expected to provide a boost to Lokesh Machines’ business and help it expand into new markets. The company is likely to benefit from the rising demand for small arms in India and other countries.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com