Few people would have heard of Lokesh Machines Ltd. At least, I hadn’t heard of it till it flashed on my radar as one of Ashish Kacholia’s latest stock picks.
Lokesh is a micro-cap with a market cap of about Rs. 100 crore. It is engaged in the business of manufacture of “high precision CNC Machines”. It boasts of having supplied to marquee clients like Volvo, Eicher, Honda, Caterpillar, Mahindra, Cummins etc. It also claims to be “the first Indian company to deliver a complete range of special purpose machines of machine Euro VI compliant cylinder blocks & heads” to Volvo.
| Lokesh Machines’ Financial Results | |||
| Figures in Rs crore | 2014 | 2013 | 2012 |
| Net Sales | 113.21 | 143.17 | 163.94 |
| Operating Profit | 29.08 | 31.95 | 36.06 |
| Profit After Tax | 0.46 | 1.06 | 7.60 |
| Share Capital | 11.78 | 11.78 | 11.78 |
| Reserves | 85.95 | 86.18 | 86.15 |
| Net Worth | 97.73 | 97.96 | 97.93 |
| Loans | 140.31 | 128.08 | 124.94 |
| Operating Profit Margin (%) | 25.69 | 22.32 | 22.00 |
| Net Profit Margin (%) | 0.41 | 0.74 | 4.64 |
| Earning Per Share (Rs) | 0.31 | 0.77 | 6.37 |
| Dividend (%) | 5.00 | 7.50 | 5.00 |
| Dividend Payout | 0.59 | 0.88 | 0.59 |
On 30th March 2015, Ashish Kacholia obtained 16 lakh shares and warrants of Lokesh Machines at Rs. 50 each. At the CMP of Rs. 91, Kacholia’s investment is worth Rs. 14.56 crore. Also, gains of 82% are already on the table.
Ashish Kacholia has earlier given us a glimpse of his visionary abilities by grabbing truckloads of defense related stocks like Zen Technologies, Axiscades and Dynamatic Technologies. Today, as billion dollar defense deals are being announced by NAMO, everyone is clamouring for a slice of these companies.
Ashish Kacholia’s logic for investing in Lokesh Machines appears to be that it is the ideal play for NAMO’s ‘Make-in-India’ credo. Lokesh already has all the technology in place to make sophisticated machinery. It has also won the confidence of elite clients like Volvo, Caterpillar etc. So, it is only a matter of time before Lokesh announces a big-ticket tie-up or collaboration for a ‘Make-in-India’ project.
When that happens, we will have another reason to compliment Ashish Kacholia for his brilliant foresight.
very poor ROE, Margin also fluctuate a lot. may be some hidden thing they know or may have got some good order.
1) Pledged promoter holding
2) Bad ROE of 3.20%
3) poor growth of 8.60%
Stock is rising just because of plastic money hype. At least not a value investment right now. We are expecting quality articles on this blog.
Why don’t you check International Travel House Ltd? CMP 273 (Small cap/ ITC is the promoter)
Awesome Guru Vachaal 🙂
Thanks 🙂
what is the business of the company ?
International Travel House commenced its operations in 1981, and offers a full bouquet of travel services. Over the years, it has grown to be one of the largest Complete Travel Management companies in India, with each of its products and services bearing the distinct ISO 9001 quality benchmarking.
With a team of dedicated professionals, a nationwide network, and state of the art technology, International Travel House is well equipped to address all possible travel needs of both Business and Leisure Travellers.
https://www.travelhouseindia.com
(copied from their website)
@ Guru Vacchal.
Thanks for throwing light on INTERNATION TRAVEL HOUSE stock.
The way, i see it…its better than sudarshan chemicals..
It is better and much better than those stocks which are already in news. All you need to do is “stay invested for long term”.
Good Luck