Lokesh Machines Ltd (LOKESHMACH) AI Stock Analysis

• Market Cap: ₹3.51B
• Dividend Yield: N/A
• Average Volume (3M): 3.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -37.98%
• EPS Growth: -119.55%
• Country: IN
• Employees: 645
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.31
• Shares Outstanding: 19,996,770
• 10 Day Avg. Volume: 4,064
• 30 Day Avg. Volume: 3,541
• PEG Ratio: -6.08
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 1.38
• P/FCF Ratio: -10.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹180.00 ▼(-0.03% Downside)

The score is driven primarily by mixed financial fundamentals—profitability and free cash flow are weak despite decent operating efficiency and a reasonably stable balance sheet—partly offset by strong technical uptrend signals. Valuation is a drag due to a negative P/E and lack of dividend yield data.

Positive Factors

Operational efficiency

Healthy gross profit and EBIT margins indicate robust core manufacturing economics and cost control. Strong operating margins provide durable buffer against revenue volatility, supporting reinvestment capacity, pricing flexibility and competitiveness over the next several quarters.

Balance sheet stability

A solid equity base and moderate leverage reduce refinancing risk and give the company capacity to fund capex or weather cyclical downturns. This structural financial stability supports long-term operations and strategic choices without immediate dependence on capital markets.

Core cash generation (operating)

A satisfactory operating cash flow to net income ratio shows the business converts reported earnings into cash at a reasonable rate. That durability supports working capital management and gradual deleveraging even if free cash flow is currently negative.

Negative Factors

Revenue decline

A near‑40% revenue decline materially reduces scale and operating leverage, pressuring fixed-cost absorption and margins. Sustained top‑line contraction limits investment capacity, weakens competitive positioning, and heightens execution risk over a multi‑quarter horizon.

Negative free cash flow

Persistent negative free cash flow constrains the firm's ability to fund capex, service debt, or return capital from internal sources. Over months, this increases reliance on external financing, raising refinancing and liquidity risk if market access tightens.

Profitability deterioration / EPS collapse

A dramatic EPS decline together with a noted drop in net profit margin signals structural profitability stress from either revenue mix, margins or non‑operating charges. Unless margins recover or revenues stabilize, earnings power and ability to generate shareholder returns will remain impaired.

Lokesh Machines Ltd Business Overview & Revenue Model

Company Description

Lokesh Machines Limited manufactures and sells machine tools in India. The company operates in two segments, Machines Division and Component Division. It offers CNC machines, including CNC lathes, vertical and horizontal machining centers, drill and tap centers, turn mill centers, and vertical turning centers. The company also provides special purpose machines, such as linear transfer lines, rotary transfer machines, simplex milling, duplex milling, triplex milling, gang milling, gun drilling, multiway drilling, line boring, fine boring, and multiway boring machines. In addition, it offers automation products, such as gantry, robotic, and 4th axis automation products, as well as customized standard machines. Further, the company provides auto components consisting of cylinder blocks and heads, and connecting rods. It also exports its products to Japan, Germany, the Netherlands, Turkey, Italy, China, and the Middle East countries. The company was incorporated in 1983 and is based in Hyderabad, India.

How the Company Makes Money

Lokesh Machines Ltd generates revenue through the sale of its machine tools and CNC equipment, which are critical for precision engineering in various industries. The company has multiple key revenue streams, including direct sales of machinery, after-sales services such as maintenance and spare parts, and potential consulting services related to automation solutions. Additionally, LOKESHMACH may engage in strategic partnerships with other manufacturers and suppliers to enhance its product offerings and reach a broader market. This integrated approach allows the company to capitalize on the growing demand for advanced manufacturing solutions, thereby driving its earnings.

Lokesh Machines Ltd Financial Statement Overview

Summary

Operational efficiency appears solid (healthy gross profit and EBIT margins) and leverage is manageable, but the latest year shows a sharp drop in net profit margin, inconsistent/declining revenue, and negative free cash flow that raises liquidity and sustainability concerns.

Income Statement

Lokesh Machines Ltd has shown mixed performance in its income statement. The company's gross profit margin and EBIT margin are healthy, indicating effective cost management and operational efficiency. However, the net profit margin has decreased significantly in the latest year, suggesting issues with profitability. Revenue growth has been inconsistent, with a notable decline in the most recent year, which impacts the overall income statement score.

Balance Sheet

The balance sheet of Lokesh Machines Ltd reflects a solid equity base, with a favorable equity ratio suggesting financial stability. The debt-to-equity ratio is relatively moderate, indicating manageable leverage. However, a declining trend in stockholders' equity and increasing total debt over the years could pose potential risks if not managed effectively.

Cash Flow

Cash flow statements highlight challenges for Lokesh Machines Ltd, with negative free cash flow in recent years indicating potential liquidity issues. The operating cash flow to net income ratio is satisfactory, but the free cash flow to net income ratio suggests room for improvement in cash management. Free cash flow growth is negative, which is a concern for future operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.14B	2.28B	2.94B	2.40B	2.02B	1.50B
Gross Profit	447.93M	313.58M	1.12B	747.37M	764.63M	606.35M
EBITDA	302.95M	299.40M	405.60M	343.35M	305.83M	252.59M
Net Income	-380.00K	5.37M	138.48M	96.73M	63.46M	39.62M
Balance Sheet
Total Assets	0.00	4.28B	3.91B	3.26B	2.94B	2.87B
Cash, Cash Equivalents and Short-Term Investments	93.28M	93.28M	2.12M	2.18M	1.77M	5.81M
Total Debt	0.00	1.34B	1.18B	880.85M	869.24M	869.04M
Total Liabilities	-2.13B	2.15B	1.95B	1.67B	1.45B	1.44B
Stockholders Equity	2.13B	2.13B	1.96B	1.59B	1.49B	1.43B
Cash Flow
Free Cash Flow	0.00	-304.38M	-416.62M	80.76M	109.15M	63.73M
Operating Cash Flow	0.00	69.06M	174.40M	316.33M	230.86M	93.33M
Investing Cash Flow	0.00	-382.15M	-595.70M	-220.01M	-112.06M	-42.25M
Financing Cash Flow	0.00	312.72M	421.23M	-95.91M	-122.85M	-53.60M

Lokesh Machines Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 180.05
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LOKESHMACH, the sentiment is Positive. The current price of 180.05 is above the 20-day moving average (MA) of 174.08, above the 50-day MA of 165.92, and below the 200-day MA of 183.67, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 73.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LOKESHMACH.

Lokesh Machines Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOKESHMACH	64 Neutral	₹3.51B	-115.53	―	―	-37.98%	-119.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STERTOOLS	62 Neutral	₹9.18B	18.87	―	0.87%	-19.33%	-26.30%
SUNDRMBRAK	55 Neutral	₹2.29B	-153.22	―	0.22%	4.26%	-121.56%
KALYANIFRG	53 Neutral	₹2.22B	29.24	―	0.62%	0.76%	17.16%
NIBL	50 Neutral	₹716.98M	3.24	―	―	―	―
GUJAPOLLO	47 Neutral	₹4.72B	-156.99	―	0.48%	4.69%	-124.17%

Lokesh Machines Ltd Corporate Events

Lokesh Machines Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Lokesh Machines Ltd has submitted a compliance certificate to the BSE and NSE confirming that it has met the requirements of Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The registrar and share transfer agent, KFin Technologies Ltd, certified that all details of securities dematerialised and rematerialised during the period have been duly furnished to all stock exchanges where the company’s shares are listed, underscoring the company’s adherence to regulatory norms and transparency in its shareholding records.

Lokesh Machines Wins Rs 22 Crore Defence Order for Machine Pistol Components

Lokesh Machines Limited has secured a domestic supply order worth Rs 22.00 crore (inclusive of duties and taxes) from the Ministry of Defence’s Advanced Weapons and Equipment India Limited for 9x19mm machine pistol sub‑assemblies and components. The order, which is to be executed by 19 March 2026, strengthens the company’s position as a defence supplier and adds revenue visibility over the medium term, underscoring its growing role in India’s indigenised defence manufacturing ecosystem and offering potential operational upside for shareholders as execution progresses.

Lokesh Machines Board Seeks Shareholder Nod to Regularise Independent Director via Postal Ballot

Lokesh Machines Limited’s board has approved a postal ballot process to seek shareholders’ consent for the regularisation of Wg Cdr Kolkappadam Vadavatath Sanil Babu (retd) as a non-executive independent director for a five-year term from November 11, 2025 to November 10, 2030, formalising his role in the company’s governance structure. The board also set the e-voting window for the postal ballot from January 2 to January 31, 2026 and fixed December 26, 2025 as the cut-off date for remote e-voting, underscoring the company’s adherence to regulatory requirements and shareholder approval processes under SEBI’s listing regulations.