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Check Before You Invest : Lokesh Machines Ltd

BSE: 532740 NSE: LOKESHMACH ISIN: INE397H01017
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Lokesh Machines Ltd belong to?
Lokesh Machines Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Lokesh Machines Ltd a good quality company?
Lokesh Machines Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Lokesh Machines Ltd undervalued or overvalued?
Lokesh Machines Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Lokesh Machines Ltd a good buy now?
Lokesh Machines Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Lokesh Machines Ltd?
Lokesh Machines Ltd revenue growth is -22.2% for FY-2025 , which is below its 5 year CAGR of 12.7% , indicating slower growth.
Q.2 Gross Profit margin of Lokesh Machines Ltd?
Lokesh Machines Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.5% for FY-2025 , which is below its 5 year median of 7.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of Lokesh Machines Ltd?
Lokesh Machines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.48% for FY-2025 , which is below its 5 year median of 13.78% indicating decreasing margins.
Q.4 Net Profit Margin of Lokesh Machines Ltd?
Lokesh Machines Ltd Net Profit Margin is 0.24% for FY-2025 , is below with its 5 year median of 3.14%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 5.5 7.8
Operating Profit Margin 12.48 13.78
Net Profit Margin 0.24 3.14
Q.5 Return on Asset of Lokesh Machines Ltd?
Lokesh Machines Ltd Return on Asset is 0.13%, which is below its 5 year historical median of 2.18%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Lokesh Machines Ltd?
Lokesh Machines Ltd Return on equity is 0.27% for FY-2025 , which is below its historical median of 4.34%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Lokesh Machines Ltd?
Lokesh Machines Ltd Return on capital employed is 4.87% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Lokesh Machines Ltd?
Lokesh Machines Ltd Cash conversion cycle is 173 days, above its historical median of 163 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.66 0.81
ROE 0.27 4.34
ROCE 4.87 9.25
Cash Conversion Cycle 173 days 163 days
Q.9 Debt to Equity ratio of Lokesh Machines Ltd?
Lokesh Machines Ltd Debt-to-Equity ratio is 0.64 , which is above with the industry average of 0.18 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Lokesh Machines Ltd?
Lokesh Machines Ltd Debt to cash flow from operations is 6.39 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Lokesh Machines Ltd?
Promoters hold 53.60% of the Lokesh Machines Ltd, with 15.33% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Lokesh Machines Ltd vs industry peers?
Lokesh Machines Ltd revenue CAGR is 12.65% , compared to the industry median CAGR of 2.46% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 228.3 101.1
Gross Profit 12.5 9.4
Operating Profit 28 9
Net Profit 1 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.66 0.89
ROE 0.27 11.8
ROCE 4.87 14.41
Cash Conversion Cycle (days) 173.41 100

Valuation & price assessment

Q.1 Stock return of Lokesh Machines Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.6% 38.8% 25.9% 43.9%
Q.3 Valuation ratios of Lokesh Machines Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 289.9 30.18 46.24
Price to Book 2.35 1.58 2.79
Price to Sales 2.83 1.36 2.66
EV to EBITDA 18.85 12.89 15.72

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