Lokesh Machines Share Price Hits 10% Upper Circuit Despite Market Sell-Off

Market Performance

On Friday, August 22, the broader market was in the red. Both Sensex and Nifty slipped nearly 0.6%, weighed down by weak global cues ahead of US Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium.

Amid this cautious mood, one small-cap stock stood out—Lokesh Machines share price rallied sharply, defying the sell-off.

Main News

Lokesh Machines hit its 10% upper circuit at ₹233.50, after opening the day at ₹190.10, compared to its previous close of ₹203.20. The trigger for this surge came from a significant regulatory update.

On August 21, the company received a Registration Certificate from the Ministry of Defence (MoD) through the Director General of Quality Assurance (DGQA). This certificate officially recognizes Lokesh Machines’ manufacturing capacity and capability for defence items, particularly arms.

• The certificate expands the company’s existing product portfolio.
• It enables in-house production of defence-related products.
• The approval is valid till August 19, 2030, giving the company a long runway in the defence sector.

Following this news, the stock was locked at the upper circuit with only buy orders seen on Dalal Street.

Company Details

Lokesh Machines is a small-cap player in the engineering and manufacturing space. The recent approval from the Ministry of Defence marks an important milestone, placing the company in a stronger position within India’s defence manufacturing ecosystem.

Alongside this, the company also provided an update regarding its ongoing discussions with the US Department of the Treasury’s Office of Foreign Assets Control. Lokesh Machines confirmed that it has already submitted all required documents and information in response to OFAC’s questionnaire. This step is part of its request to remove or reconsider the company’s inclusion in the Specially Designated Nationals and Blocked Persons list.

The management emphasized that efforts are underway to resolve this matter swiftly, assuring shareholders that this update marks an important step in the process.

Lokesh Machines Share Price Journey

Despite short-term volatility, Lokesh Machines share price has been a remarkable story over the years.

• In the last 1 year, the stock has slipped 37.67%.
• Over 3 years, it has gained 160%.
• Over 5 years, it has delivered an impressive 857% return.
• In the last 10 years, the stock has climbed 145%.

Such numbers highlight how Lokesh Machines has been an outlier in the small-cap space, rewarding long-term investors despite recent challenges.

Summary

In a market session dominated by cautious sentiment, Lokesh Machines share price stole the spotlight with a 10% upper circuit rally. The surge was fueled by its new defence manufacturing approval, valid until 2030, and positive developments in its OFAC clearance process.

The multibagger journey of Lokesh Machines continues to draw attention, as the stock remains a rare standout during a broader market sell-off.