Lokesh Machines shares hit 20% upper circuit, touch new 52-week high; Here's why

Stock Market News: Lokesh Machines shares hit 20% upper circuit and touched a new 52-week high on Thursday after the company obtained its initial licence to manufacture small arms. Lokesh Machines shares opened at ₹155.25 apiece on BSE and following the news of announcement of the licence the shares began to move in an upward direction. At 14:10 IST, the shares were locked at 20% upper circuit at ₹185.85.  

The initial licence (Form VIJ) for small arms manufacturing has been awarded to Lokesh Machines, subject to payment of applicable fees, the company stated in an exchange filing. The notification was received from the Ministry of Home Affairs, New Delhi.

A copy of the aforementioned licence has not yet been sent to the company. It will notify the exchange right away after getting the licence.

"The intimation has been received from the Ministry of Home Affairs, New Delhi, stating that the Initial License (Form VIJ) for Manufacturing of Small Arms has been granted to Lokesh Machines Limited, subject to payment of applicable fees. However, we have not yet received a copy of the afore-said license. Upon receiving the license, we will promptly inform the exchange," said the company in an exchange filing today.

As per trendlyne data, the stock price rose 152.2% and outperformed its sector by 83.1% in the past year. The stock has been trading at high volume of 1.6 million with price gain of 20 during Thursday's session.

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock has hit upper circut at 20% backed with strong volumes its has broken above its previous swing high and 171 and is in a strong uptrend, any dips in the near term towards 170 can be considered as a buying opportunity whereas 200 is possibly expected in coming sessions.