The current price of Rs 258.80, discounts its 7-months April-October 2005 annualized EPS of Rs 5.50, by a PE multiple of 47.

The post-issue, FII-holding in the company is 6.4%. Mutual funds hold 3% and promoters hold 74.53% in the company with an equity base at Rs 11.77 crore.

Lokesh Machines is engaged in the design, development and manufacture of custom built Special Purpose Machines and General Purpose CNC (Computerised Numerical Control) machines. From handling job works, the company has gradually progressed to manufacture of special purpose machines over the years.

Nearly half the company's revenue comes from the CNC machine business. The auto component business contributes 35% of the revenue.

Innovation and product development is a major strength of the company. Lokesh Machines has a full-fledged design department with more than 50 experienced engineers in the fields of mechanical, electrical & electronics, hydraulics & pneumatic designs.

The company has been able to build a long term arrangement with customers like Mahindra & Mahindra and Ashok Leyland for machining & supply of critical components. However, the revenues of the company are dependent on a limited number of clients. The top five customers contributed 55% to the total sales of the company, during the financial year 2004-05.

For 7-months period ended 31 October 2005, the company reported a net profit of Rs 3.78 crore on sales of Rs 40.18 crore.