Lokesh Machines Ltd (LOKESHMACH) AI Stock Analysis

• Market Cap: ₹3.83B
• Dividend Yield: N/A
• Average Volume (3M): 10.20K
• Price to Earnings (P/E): 4893.9
• Beta (1Y): 0.90
• Revenue Growth: -30.06%
• EPS Growth: -99.50%
• Country: IN
• Employees: 645
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.23
• Shares Outstanding: 19,996,770
• 10 Day Avg. Volume: 16,681
• 30 Day Avg. Volume: 10,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹210.00
• Price Target Upside: 9.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹210.00 ▲(9.75% Upside)

Lokesh Machines Ltd faces significant challenges, primarily due to its extremely high P/E ratio, indicating potential overvaluation, and negative free cash flow, which raises liquidity concerns. While the company shows operational efficiency, the technical analysis suggests bearish momentum, and the lack of dividend yield further impacts its attractiveness. Addressing profitability and cash flow issues is crucial for improving its financial health.

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 makes money through the sale of its machine tools and engineering products. The company's revenue model is based on manufacturing and selling CNC machines, special purpose machines, and automotive components to industries such as automotive, aerospace, and general engineering. Key revenue streams include direct sales of machinery and components, as well as maintenance and after-sales services. The company may also engage in strategic partnerships or collaborations with other firms to enhance its product offerings and market reach, contributing to its overall earnings.

Lokesh Machines Ltd Financial Statement Overview

Summary

Lokesh Machines Ltd demonstrates solid operational capabilities with effective cost management reflected in its income statement. However, decreasing net income and inconsistent revenue growth are concerns. The balance sheet shows financial stability with a reasonable equity ratio but indicates a rising debt profile that needs attention. Cash flow challenges, particularly negative free cash flow, pose significant risks to liquidity.

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	2.70B	2.28B	2.94B	2.40B	2.00B	1.49B
Gross Profit	566.35M	145.96M	1.12B	747.37M	764.63M	606.35M
EBITDA	346.72M	299.40M	405.60M	343.35M	305.83M	262.31M
Net Income	51.05M	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	87.80M	93.28M	2.12M	81.44M	1.77M	5.81M
Total Debt	0.00	1.34B	1.18B	880.85M	869.24M	869.04M
Total Liabilities	-2.01B	2.15B	1.95B	1.67B	1.45B	1.44B
Stockholders Equity	2.01B	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: Negative
• Last Price: 191.35
• 50DMA: Negative
• 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 Negative. The current price of 191.35 is below the 20-day moving average (MA) of 197.20, below the 50-day MA of 203.17, and below the 200-day MA of 214.06, indicating a bearish trend. The MACD of -2.20 indicates Negative momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 65.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	69 Neutral	₹11.26B	22.98	11.67%	0.80%	-5.67%	-19.62%
KALYANIFRG	60 Neutral	₹2.44B	25.98	9.27%	0.60%	4.21%	142.44%
GUJAPOLLO	59 Neutral	₹5.87B	-1,205.06	0.48%	0.40%	-15.84%	-103.88%
SUNDRMBRAK	56 Neutral	₹2.97B	94.37	5.21%	0.20%	5.14%	-61.05%
LOKESHMACH	54 Neutral	₹3.83B	4,893.86	―	―	-30.06%	-99.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Lokesh Machines Ltd Corporate Events

Lokesh Machines Ltd Appoints Key Managerial Personnel for SEBI Compliance

Lokesh Machines Ltd announced the designation of key managerial personnel responsible for determining the materiality of events and information, as per SEBI regulations. This move is aimed at ensuring compliance with disclosure requirements, potentially enhancing transparency and communication with stakeholders.