⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
THERMAX - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | THERMAX | Market Cap | 39,186 Cr. | Current Price | 3,288 ₹ | High / Low | 4,092 ₹ |
| Stock P/E | 66.6 | Book Value | 341 ₹ | Dividend Yield | 0.43 % | ROCE | 16.5 % |
| ROE | 13.4 % | Face Value | 2.00 ₹ | DMA 50 | 3,064 ₹ | DMA 200 | 3,209 ₹ |
| Chg in FII Hold | -1.08 % | Chg in DII Hold | 0.89 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 226 Cr. |
| RSI | 63.0 | MACD | 67.4 | Volume | 2,37,397 | Avg Vol 1Wk | 3,41,152 |
| Low price | 2,743 ₹ | High price | 4,092 ₹ | PEG Ratio | 1.92 | Debt to equity | 0.04 |
| 52w Index | 40.4 % | Qtr Profit Var | 7.11 % | EPS | 60.7 ₹ | Industry PE | 33.0 |
📊 Financials
- Revenue Growth: Stable, though PAT declined (111 Cr vs 226 Cr)
- Profit Margins: EPS at 60.7 ₹, showing profitability but under pressure
- Debt Ratios: Very low debt-to-equity (0.04), strong financial discipline
- Cash Flows: Healthy, supported by consistent profits
- Return Metrics: ROCE 16.5% and ROE 13.4% indicate solid efficiency
💹 Valuation
- P/E Ratio: 66.6, much higher than industry average (33.0), suggesting overvaluation
- P/B Ratio: ~9.6 (Current Price / Book Value), expensive
- PEG Ratio: 1.92, indicating fair valuation relative to growth
- Intrinsic Value: Overvalued compared to peers, but supported by growth visibility
🏢 Business Model & Health
- Business Model: Energy and environment solutions, diversified across industries
- Competitive Advantage: Strong brand, niche expertise, and global presence
- Overall Health: Financially sound with growth prospects, though valuations are stretched
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 3,000–3,100 ₹ levels (close to DMA 50)
- Long-Term Holding: Suitable for growth investors; dividend yield (0.43%) adds minor stability
✅ Positive
- EPS of 60.7 ₹ reflects profitability
- Low debt-to-equity ratio ensures financial strength
- Technical indicators (RSI 63.0, MACD 67.4) show bullish momentum
⚠️ Limitation
- P/E ratio significantly higher than industry average
- P/B ratio expensive compared to peers
- Quarterly PAT dropped sharply (111 Cr vs 226 Cr)
📉 Company Negative News
- FII holdings decreased (-1.08%), showing reduced foreign investor confidence
- Quarterly profit decline highlights volatility
📈 Company Positive News
- DII holdings increased (+0.89%), showing domestic institutional support
- Strong technical momentum with RSI above 60
🏭 Industry
- Capital goods industry P/E: 33.0, lower than THERMAX’s valuation
- Sector demand driven by industrial expansion and sustainability initiatives
🔎 Conclusion
- THERMAX is financially strong with consistent profitability and low debt
- Valuation is expensive compared to industry peers
- Best suited for long-term investors seeking growth exposure; entry near 3,000–3,100 ₹ offers better risk-reward