Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Lokesh Machines Limited, an Indian enterprise founded in 1983 and based in Hyderabad, is a key manufacturer and supplier of industrial machinery. The company operates through two distinct segments: its Machines Division and its Component Division. Under its Machines Division, Lokesh offers an extensive array of computer numerical control (CNC) equipment, which includes CNC lathes, vertical and horizontal machining centers, drill and tap centers, turn mill centers, and vertical turning centers. This division also specializes in producing various special purpose machines, such as linear and rotary transfer lines, a range of milling solutions (simplex, duplex, triplex, gang), different drilling options (gun, multiway), and diverse boring machines (line, fine, multiway). Additionally, they provide automation solutions, encompassing gantry, robotic, and 4th-axis automation products, along with customized standard machines. The Component Division focuses on the production of automotive parts, manufacturing items like cylinder blocks, cylinder heads, and connecting rods. Lokesh Machines maintains a significant international footprint, exporting its broad product range to numerous countries, including Japan, Germany, the Netherlands, Turkey, Italy, China, and nations across the Middle East.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB