Multibagger small-cap stock Lokesh Machines rallied in intraday trade on Friday, August 22, defying the stock market selloff, to its 10% upper price band. The gains in the stock followed after the company received Registration Certificate for manufacturing capacity for defence items of arms from the Ministry of Defence.
“Director General of Quality Assurance (DGQA), Ministry of Defence, Government of India, has granted the Registration Certificate for manufacturing capacity/ capability for defence items,” Lokesh Machines said in an exchange filing today.
This approval, which the company received on August 21, will extend the existing product portfolio of the company, while enabling it to manufacture defence products at its in-house facility.
The said approval is valid up to August 19, 2030.
Meanwhile, in another update yesterday, the small-cap company announced that it has submitted documents and required information to the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).
This is in response to a questionnaire from OFAC, as part of our request for the company’s name to be quickly removed or reconsidered from their list of Specially Designated Nationals and Blocked Persons, the company said.
We assure our shareholders that the company is taking all necessary steps for the removal of the company’s name from the OFAC Sanctions list, and we believe that this is a major step towards the same, Lokesh Machines said.
Lokesh Machines Share Price Movement
Small-cap stock Lokesh Machines opened the session at ₹190.10, slightly below its closing price of ₹203.20. However, following the update regarding receipt of the certificate from the MoD, Lokesh Machines surged to the 10% upper price band of ₹233.50.
Since then, the stock was locked in the 10% upper circuit, with only ‘Buy’ orders for the small-cap scrip. The rally comes at a time when the Indian stock market’s benchmark indices – Sensex and Nifty – traded with cuts of 0.6% ahead of the Federal Reserve chair Jerome Powell’s speech and the Jackson Hole Symposium.
Lokesh Machines’ stock has been an outlier on Dalal Street, delivering multibagger returns over a longer time frame. Even as the stock has lost 37.67% in the last one year, it has surged 160% in three years, 857% in five years and 145% in 10 years.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
