Lokesh Machines Ltd (LOKESHMACH) AI Stock Analysis

• Market Cap: ₹4.09B
• Dividend Yield: N/A
• Average Volume (3M): 3.54K
• Price to Earnings (P/E): 130.0
• Beta (1Y): 0.78
• 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: ₹225.00 ▲(24.97% Upside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

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

Strong gross and EBIT margins

Healthy gross and EBIT margins indicate durable operational efficiency and cost control in core manufacturing processes. This margin structure supports resilience to input cost swings, preserves operating profitability under revenue pressure, and provides capacity to reinvest in product quality and service over the medium term.

Manageable leverage and solid equity base

A favorable equity ratio and moderate debt levels provide financial flexibility for capital expenditure and working capital needs. Manageable leverage reduces refinancing risk, helping the company sustain operations and pursue incremental growth without immediate dependence on dilutive or expensive financing.

Operating cash flow generation vs. net income

A satisfactory operating cash flow to net income ratio suggests core operations convert earnings into cash effectively. Even with recent free cash flow weakness, the ability to generate operating cash is a durable foundation for stabilizing liquidity, funding working capital and improving cash conversion with focused management actions.

Negative Factors

Negative free cash flow

Sustained negative free cash flow constrains the firm's ability to fund capex, R&D or pay down debt from internal resources. Over several quarters this undermines financial resilience, increases reliance on external financing, and can limit strategic investments unless cash conversion or capital allocation is materially improved.

Declining revenue and net profit margin

Falling revenue and a sharp net margin decline signal weakening demand, pricing pressure, or non-operating costs eroding returns. These trends reduce retained earnings and free cash flow, impairing the firm's ability to invest in growth or absorb shocks unless revenue stabilization or margin recovery is achieved.

Eroding shareholders' equity trend

A downward trend in equity alongside rising debt weakens the balance sheet over time, raising leverage risk and potential cost of capital. Continued erosion would limit strategic flexibility, increase vulnerability to cyclical downturns, and potentially force more expensive financing or asset sales to meet obligations.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.89B	2.28B	2.94B	2.40B	2.02B	1.50B
Gross Profit	392.04M	313.58M	1.12B	747.37M	764.63M	606.35M
EBITDA	277.78M	299.40M	405.60M	343.35M	305.83M	252.59M
Net Income	-28.96M	5.37M	138.48M	96.73M	63.46M	39.62M
Balance Sheet
Total Assets	4.59B	4.28B	3.91B	3.26B	2.94B	2.87B
Cash, Cash Equivalents and Short-Term Investments	110.25M	93.28M	2.12M	2.18M	1.77M	5.81M
Total Debt	1.61B	1.34B	1.18B	880.85M	869.24M	869.04M
Total Liabilities	2.33B	2.15B	1.95B	1.67B	1.45B	1.44B
Stockholders Equity	2.26B	2.13B	1.96B	1.59B	1.49B	1.43B
Cash Flow
Free Cash Flow	-293.30M	-304.38M	-416.62M	80.76M	109.15M	63.73M
Operating Cash Flow	-172.73M	69.06M	174.40M	316.33M	230.86M	93.33M
Investing Cash Flow	-118.67M	-382.15M	-595.70M	-220.01M	-112.06M	-42.25M
Financing Cash Flow	292.19M	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: Positive
• 200DMA: Positive
• 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 below the 20-day moving average (MA) of 191.82, below the 50-day MA of 181.95, and below the 200-day MA of 185.82, indicating a bullish trend. The MACD of 8.30 indicates Negative momentum. The RSI at 61.73 is Neutral, neither overbought nor oversold. The STOCH value of 61.21 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
STERTOOLS	70 Outperform	₹6.45B	157.48	―	0.87%	-19.33%	-26.30%
LOKESHMACH	64 Neutral	₹4.09B	129.95	―	―	-37.98%	-119.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KALYANIFRG	62 Neutral	₹2.01B	-483.49	―	0.62%	0.76%	17.16%
SUNDRMBRAK	56 Neutral	₹2.15B	-54.31	―	0.22%	4.26%	-121.56%
NIBL	50 Neutral	₹712.14M	-2.06	―	―	―	―
GUJAPOLLO	47 Neutral	₹4.80B	204.12	―	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.