Why is Lokesh Mach. falling/rising?

Aug 28 2025 09:57 PM IST
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As of 28-Aug, Lokesh Machines Ltd is currently priced at Rs 207.00, showing a short-term price increase despite a concerning long-term decline of 33.44% year-to-date and negative financial results over the past three quarters. The stock has outperformed the Sensex recently, but its weak fundamentals raise concerns about future stability.
As of 28-Aug, Lokesh Machines Ltd is experiencing a price increase, currently at Rs 207.00, reflecting a rise of 2.2 (1.07%). The stock has shown a trend reversal after two consecutive days of decline, having opened with a loss of 2.2% today but reaching an intraday high of Rs 210.25. Over the past week, the stock has outperformed its sector by 2.19%, and it has gained 6.65% over the past month, contrasting with the Sensex, which has declined by 1.00% in the same period. However, the stock's long-term performance remains concerning, with a year-to-date decline of 33.44% and a staggering 42.17% drop over the past year, alongside a significant fall in profits of 100.2%.

Broader Market Context: In the short term, Lokesh Machines Ltd has outperformed the benchmark Sensex, which has declined by 2.34% over the past week. Despite this recent uptick, the stock's long-term fundamentals are weak, evidenced by a low Return on Capital Employed (ROCE) of 4.3 and a high Debt to EBITDA ratio of 3.18 times. The company has reported negative results for the last three consecutive quarters, with a notable decline in net sales and profits. This combination of short-term gains against a backdrop of poor long-term performance suggests that while the stock may be rising in the immediate term, significant underlying issues could hinder its future stability.
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