THERMAX - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Here’s a detailed breakdown of Thermax Ltd (THERMAX), a leading player in energy and environmental solutions

📊 Core Financials

Profitability & Growth

PAT improved to ₹206 Cr from ₹114 Cr — a 9.58% quarterly growth, though modest

EPS: ₹53.2 — solid earnings base

ROE: 13.4%, ROCE: 16.2% — healthy return metrics, above industry median

Balance Sheet & Leverage

Debt-to-equity: 0.35 — moderate leverage, manageable

Dividend Yield: 0.37% — low but consistent

Cash Flow & Efficiency

Strong operating margins and disciplined capital allocation

FII interest increasing (+0.16%), while DII holding declined (-0.51%)

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 71.7 High — premium valuation vs industry PE of 57.2

P/B Ratio ~9.1 Expensive — reflects strong investor confidence

PEG Ratio 2.65 Overvalued relative to growth

Intrinsic Value Below CMP Stock appears stretched at current levels

🧠 Business Model & Competitive Edge

Core Business: Engineering solutions for energy, environment, and chemical sectors

Segments: Boilers, chillers, water treatment, air pollution control, and renewables

Strengths

Strong brand with global presence

Focus on sustainability and clean technologies

Strategic acquisitions (e.g., Buildtech Products) to expand capabilities

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Challenges

High valuation may limit upside

Revenue growth slowing — recent QoQ decline of ~30%

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📉 Technical & Sentiment Indicators

RSI: 59.7 — neutral zone, no clear momentum

MACD: 93.0 — bullish crossover, short-term strength

Volume slightly below average — subdued interest

DMA 50 & 200: CMP above both — positive trend continuation

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹3,400–₹3,600 — closer to 50 DMA and better valuation support

Long-Term Holding: Suitable for ESG-focused investors and those seeking exposure to clean tech. Monitor earnings consistency and margin expansion.

Want to compare Thermax with peers like ABB India or Cummins to see how it stacks up in the industrials space?

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stockanalysis.com

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economictimes.indiatimes.com

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