Lokesh Machines’ shares hit the 20% upper circuit on Thursday after the company announced that it had received its initial licence to manufacture small arms. 

Lokesh Machines has informed that it had been awarded the Initial License (Form VIJ) for manufacturing small arms by the Ministry of Home Affairs, New Delhi, subject to payment of applicable fees. It had received a notification from the Ministry.

In the exchange filing today, the company said it had not received a copy of the license mentioned above. Upon receiving the license, it will promptly inform the exchange. 

In the quarter ended, the company posted a 9% jump in its Q4FY23 net profit at Rs 2.96 crore against Rs 2.71 crore in March 2022. The company’s revenue was Rs 67 crore in March 2023, up 2.74% from Rs 65.21 crore in March 2022.

Shares of the machine manufacturer closed at Rs 186, up 20% from the previous close, touching a new 52-week high. The stock has grown 167% in the last year.