Lokesh Machines Ltd (LOKESHMACH) AI Stock Analysis

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Lokesh Machines Ltd

(NSE:LOKESHMACH)

Select Model

Rating:50Neutral

Price Target:INR 360.00▲(0.08% Upside)

Action:reiterated

Date:10/06/26

The score is held back primarily by weak recent cash generation (negative operating cash flow in 2026 and multiple years of negative free cash flow) alongside rising debt and volatile profitability. Technicals are supportive due to strong momentum above key moving averages, but overbought indicators add near-term risk. Valuation is a further drag given the very high P/E and no provided dividend yield.

Positive Factors

Revenue recoveryThe return to revenue growth in 2026 indicates that demand and customer activity recovered after the prior contraction. If sustained, renewed top-line expansion can improve operating leverage, support capacity utilization, and strengthen the company’s ability to rebuild earnings over the coming quarters.

Negative Factors

Weak recent cash generationRecent negative operating and free cash flow indicates that reported operating earnings are not converting reliably into cash. Persistent cash absorption reduces funding flexibility, can increase dependence on external financing, and may constrain investment or shareholder returns over the next several quarters.

Lokesh Machines Ltd (LOKESHMACH) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 7.89B
Dividend Yield: ―
Average Volume (3M): 9,052
Price to Earnings (P/E): 163.8
Beta (1Y): 1.23
Revenue Growth: 1.00%
EPS Growth: 5509.46%
Country: India
Employees: 545
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Lokesh Machines Ltd Business Overview & Revenue Model

Company Description

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. Un...

How the Company Makes Money

Lokesh Machines Ltd primarily makes money by selling machine tools and related equipment to industrial customers; revenue is recognized when machines/solutions are delivered and accepted under customer contracts. A secondary, recurring source of reve...

Lokesh Machines Ltd Financial Statement Overview

Summary

Financials are mixed: income statement performance is volatile (sharp profit drop in 2025 with only partial recovery in 2026) and cash flow is a major weakness (operating cash flow turned negative in 2026 and free cash flow has been negative in multiple recent years). The balance sheet is moderately healthy with manageable leverage historically, but debt rose materially in 2026, increasing risk if cash conversion doesn’t improve.

Income Statement

54Neutral

Balance Sheet

62Positive

Cash Flow

32Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.09B	2.09B	2.28B	2.94B	2.40B	2.02B
Gross Profit	226.38M	392.08M	313.58M	1.12B	747.37M	764.63M
EBITDA	382.53M	387.23M	299.40M	405.60M	343.35M	305.83M
Net Income	38.62M	38.62M	5.37M	138.48M	96.73M	63.46M
Balance Sheet
Total Assets	4.96B	4.96B	4.28B	3.91B	3.26B	2.94B
Cash, Cash Equivalents and Short-Term Investments	102.33M	102.33M	93.28M	2.12M	2.18M	1.77M
Total Debt	1.69B	1.69B	1.34B	1.18B	880.85M	869.24M
Total Liabilities	2.68B	2.68B	2.15B	1.95B	1.67B	1.45B
Stockholders Equity	2.28B	2.28B	2.13B	1.96B	1.59B	1.49B
Cash Flow
Free Cash Flow	-293.30M	-465.76M	-304.38M	-416.62M	80.76M	109.15M
Operating Cash Flow	-172.73M	-306.87M	69.06M	174.40M	316.33M	230.86M
Investing Cash Flow	-118.67M	-166.13M	-382.15M	-595.70M	-220.01M	-112.06M
Financing Cash Flow	292.19M	473.45M	312.72M	421.23M	-95.91M	-122.85M

Lokesh Machines Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price359.70

Price Trends

50DMA368.06Negative

100DMA341.83Positive

200DMA278.36Positive

Market Momentum

MACD-1.45Positive

RSI43.75Neutral

STOCH44.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LOKESHMACH, the sentiment is Negative. The current price of 359.70 is below the 20-day moving average (MA) of 411.47, below the 50-day MA of 368.06, and above the 200-day MA of 278.36, indicating a neutral trend. The MACD of -1.45 indicates Positive momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 44.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LOKESHMACH.

Lokesh Machines Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:LOKESHMACH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PIXTRANS	75Outperform	INR 22.20B	16.96	―	0.55%	4.81%	16.32%
IN:JYOTICNC	68Neutral	INR 206.02B	64.05	―	―	17.44%	-4.39%
IN:GREAVESCOT	57Neutral	INR 46.45B	46.37	―	1.00%	21.20%	22.83%
IN:SHANTIGEAR	57Neutral	INR 35.88B	62.05	―	0.85%	-14.22%	-37.57%
IN:KIRLOSENG	56Neutral	INR 261.95B	47.81	―	0.50%	22.66%	15.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:LOKESHMACH	50Neutral	INR 7.84B	163.80	―	―	1.00%	5509.46%

* General Sector Average

Performance Comparison

IN:LOKESHMACH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:LOKESHMACH	Lokesh Machines Ltd	359.70	171.20	90.82%
IN:GREAVESCOT	Greaves Cotton Limited	199.40	-18.71	-8.58%
IN:JYOTICNC	Jyoti Cnc Automation Limited	905.90	27.85	3.17%
IN:KIRLOSENG	Kirloskar Oil Engines Limited	1799.50	783.34	77.09%
IN:PIXTRANS	PIX Transmissions Ltd	1629.10	171.97	11.80%
IN:SHANTIGEAR	Shanthi Gears Limited	467.70	-7.21	-1.52%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 06, 2026

Lokesh Machines Ltd AI Stock Analysis

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