In a major boost for India's domestic defence manufacturing sector, small-cap company Lokesh Machines Limited has been awarded a contract worth ₹42.6 million (approximately USD 515,000) by the Indian Army's Northern Command. The contract entails the supply of 9x19mm ASMI submachine guns with accompanying accessories. This order, placed by a domestic entity, is expected to be fulfilled by September 28, 2024.
Established in 1983, Lokesh Machines Limited is an Indian company specializing in the manufacture of special-purpose machines (SPM), general-purpose machines/CNC lathes (GPM), connecting rods, and the machining of cylinder blocks and heads. The company operates through two primary divisions: the Machines Division and the Component Division.
The announcement of the contract had a positive impact on the company's stock, which closed at ₹408.30 per share on Friday, contributing to a market capitalization of ₹755.22 crore. Notably, the stock has demonstrated impressive growth over the past year, delivering a multibagger return of approximately 185%.
As of March 2024, the company's promoters hold a 50.76% stake, while foreign institutional investors (FIIs) and the public hold 0.27% and 48.98% stakes, respectively.
In the fourth quarter of the 2024 fiscal year (Q4 FY24), Lokesh Machines Limited reported revenue of ₹80.34 crore and a net profit of ₹4.69 crore. For the entire FY24, the company's revenue reached ₹294 crore, with a net profit of ₹14 crore, marking a notable increase from the ₹10 crore net profit recorded in the previous year.
Additional Information
The ASMI (pride, self-respect) submachine gun, designed by Colonel Prasad Bansod from the Infantry School, Mhow, with support from the Defence Research and Development Organisation (DRDO), is the first indigenous small arm ordered by the Indian Army since the INSAS rifle.Disclaimer: This news article is for informational purposes only and should not be considered financial advice.
