Lokesh Machines Ltd (LOKESHMACH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

United Drilling

Fabtech Tech.

Lokesh Mach.

Axtel Industries

Intl. Conveyors

Artson

Captain Techno.

GP Eco Solutions

E to E Transport

Tankup Engi.

Sahasra Electro.

Why is Lokesh Machines Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.86%

Poor long term growth as Net Sales has grown by an annual rate of 6.78% and Operating profit at 6.44% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.06 times

With a growth in Net Profit of 241.27%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
PBT LESS OI(Q) At Rs 2.35 cr has Grown at 437.1% (vs previous 4Q average)
NET SALES(Latest six months) At Rs 110.09 cr has Grown at 21.67%
PAT(Latest six months) Higher at Rs 2.78 cr

With ROCE of 3.1, it has a Fair valuation with a 1.9 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 60.05%, its profits have risen by 336% ; the PEG ratio of the company is 0.3

Market Beating performance in long term as well as near term

Along with generating 60.05% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lokesh Mach. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lokesh Mach. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lokesh Mach.

60.05%

1.07

56.17%

Sensex

-10.34%

-0.79

13.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.78%

EBIT Growth (5y)

6.44%

EBIT to Interest (avg)

1.67

Debt to EBITDA (avg)

3.55

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

0.82

Tax Ratio

27.36%

Dividend Payout Ratio

Pledged Shares

15.33%

Institutional Holding

ROCE (avg)

7.80%

ROE (avg)

4.37%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

144

Industry P/E

Price to Book Value

2.47

EV to EBIT

31.31

EV to EBITDA

18.53

EV to Capital Employed

1.88

EV to Sales

3.40

PEG Ratio

0.25

Dividend Yield

ROCE (Latest)

3.09%

ROE (Latest)

1.71%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

29What is working for the Company

PBT LESS OI(Q)

At Rs 2.35 cr has Grown at 437.1% (vs previous 4Q average

NET SALES(Latest six months)

At Rs 110.09 cr has Grown at 21.67%

PAT(Latest six months)

Higher at Rs 2.78 cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.49 times

PBDIT(Q)

Highest at Rs 10.50 cr.

EPS(Q)

Highest at Rs 1.08

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Lokesh Mach.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.35 cr has Grown at 437.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 0.44 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2.15 cr has Grown at 364.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 0.46 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 59.36 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.49 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.35 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 59.36 cr has Grown at 26.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 46.98 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 10.50 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 2.15 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.08

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)