Lokesh Machines locked on 10 percent upper circuit after bagging manufacturing registration from Defence Ministry

Lokesh Machines. Image Source: Company annual report

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Lokesh Machines, makers of special purpose machines, small arms, and cylinder heads for vehicles, has bagged a registration certificate from the Director General of Quality Assurance (DGQA) to manufacture defence items, sending the shares of the company on 10 percent upper circuit.

"This will extend our existing product portfolio and enable us to manufacture defence products at our in-house facility," the company said in an exchange filing on August 22. The Registration Certificate is for the 'manufacturing capacity or capability for defence items of arms', Lokesh Machines added, and is valid for the next five years.

The company has a market capitalisation of Rs 447 crore and has supplied CNC machines to the USA on a pilot basis, as well as weapon sets to various forces in India following a manufacturing license for small arms. During 2020-22, the company had forayed into defence and aerospace sector. The company has also supplied cylinder blocks to M&M and Volvo Eicher in the past. Lokesh Machines exports to more than 14 countries, including Russia in the past, and has six manufacturing plant in India for auto components and defence products.

The FY24 annual report shows the company has an order book of Rs 216.36 crore, with a revenue of Rs 293.54 crore, up 22.15 percent on year. The net profit came in at Rs 13.85 crore, reflecting a growth of 43.23 percent on year.

Lokesh Machines has plans to boost defence revenue by expanding capacities and introducing new product lines. "We have received the License for Commercial Production of Small Arms from the Ministry of Home Affairs (MHA) and dispatched approximately 100 weapon sets to various forces such as the NSG, Assam Rifles, and SAF. We are proud to be the first Company in India's private sector to indigenously manufacture and supply small arms to elite forces," Mullapudi Lokeswara Rao, Managing Director of Lokesh Machines had said in FY24.