⚠ 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: 3.6
| Stock Code | THERMAX | Market Cap | 34,344 Cr. | Current Price | 2,886 ₹ | High / Low | 4,092 ₹ |
| Stock P/E | 59.2 | Book Value | 341 ₹ | Dividend Yield | 0.49 % | ROCE | 16.5 % |
| ROE | 13.4 % | Face Value | 2.00 ₹ | DMA 50 | 2,967 ₹ | DMA 200 | 3,261 ₹ |
| Chg in FII Hold | -1.08 % | Chg in DII Hold | 0.89 % | PAT Qtr | 226 Cr. | PAT Prev Qtr | 46.5 Cr. |
| RSI | 44.9 | MACD | -31.0 | Volume | 44,243 | Avg Vol 1Wk | 1,01,367 |
| Low price | 2,743 ₹ | High price | 4,092 ₹ | PEG Ratio | 1.70 | Debt to equity | 0.04 |
| 52w Index | 10.6 % | Qtr Profit Var | 109 % | EPS | 54.6 ₹ | Industry PE | 35.4 |
📊 Core Financials
- Revenue Growth: Strong quarterly PAT growth from 46.5 Cr. to 226 Cr. (+109%).
- Profit Margins: EPS at 54.6 ₹, showing healthy profitability.
- Debt Ratios: Very low debt-to-equity (0.04), indicating strong financial stability.
- Cash Flows: Likely positive given consistent profitability and low leverage.
- Return Metrics: ROCE at 16.5% and ROE at 13.4% reflect efficient capital utilization.
💹 Valuation Indicators
- P/E Ratio: 59.2, significantly higher than industry average (35.4), suggesting premium valuation.
- P/B Ratio: ~8.46 (Current Price / Book Value), expensive relative to book value.
- PEG Ratio: 1.70, indicates valuation is somewhat aligned with growth expectations.
- Intrinsic Value: Current price (2,886 ₹) trades below DMA 50 (2,967 ₹) and DMA 200 (3,261 ₹), signaling potential undervaluation in technical terms despite premium fundamentals.
🏢 Business Model & Competitive Advantage
- THERMAX operates in energy and environment solutions, offering engineering services and sustainable technologies.
- Competitive advantage lies in diversified offerings across power, water, and renewable energy solutions.
- Strong balance sheet and niche expertise provide resilience against cyclical downturns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 2,750–2,850 ₹, close to support levels and below DMA averages.
- Long-Term Holding: Suitable for investors seeking exposure to sustainable energy and engineering solutions. Premium valuation limits upside, but strong fundamentals support long-term holding.
Positive
- Quarterly PAT surged 109%, showing strong operational performance.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- EPS of 54.6 ₹ reflects strong earnings power.
Limitation
- High P/E ratio compared to industry average.
- P/B ratio expensive at ~8.46.
- Technical indicators weak (MACD negative, RSI mid-range).
Company Negative News
- FII holdings decreased (-1.08%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 and DMA 200, reflecting bearish sentiment.
Company Positive News
- Quarterly PAT improved significantly from 46.5 Cr. to 226 Cr.
- DII holdings increased (+0.89%), reflecting domestic institutional support.
Industry
- Industry P/E at 35.4, lower than THERMAX’s valuation, suggesting sector trades at more reasonable multiples.
- Energy and environment solutions sector benefits from sustainability and infrastructure demand.
Conclusion
- THERMAX shows strong fundamentals with profitability growth, low debt, and diversified business model.
- Valuation is stretched compared to industry, but current price below DMA levels offers entry opportunity.
- Long-term investors can hold for growth and stability, while monitoring valuation and technical trends.
I can also prepare a valuation vs growth HTML chart to visualize THERMAX’s premium pricing against its earnings momentum if you’d like.