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THERMAX - IntraDay Trade Analysis with Live Signals

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Rating: 3.3

Last Updated Time : 03 May 26, 09:03 am

IntraDay Trade Rating: 3.3

Stock Code THERMAX Market Cap 48,587 Cr. Current Price 4,078 ₹ High / Low 4,305 ₹
Stock P/E 82.6 Book Value 341 ₹ Dividend Yield 0.34 % ROCE 16.5 %
ROE 13.4 % Face Value 2.00 ₹ DMA 50 3,533 ₹ DMA 200 3,324 ₹
Chg in FII Hold -1.11 % Chg in DII Hold 0.65 % PAT Qtr 111 Cr. PAT Prev Qtr 226 Cr.
RSI 65.7 MACD 214 Volume 2,79,138 Avg Vol 1Wk 1,78,932
Low price 2,743 ₹ High price 4,305 ₹ PEG Ratio 2.37 Debt to equity 0.04
52w Index 85.4 % Qtr Profit Var 7.11 % EPS 60.7 ₹ Industry PE 37.9

📈 Optimal Buy Price: 4,050 – 4,070 ₹ (near short-term support)

💰 Profit Exit Levels: 4,120 – 4,160 ₹ (resistance zone), 4,200 ₹ (momentum breakout)

⚠️ Stop-Loss: 4,020 ₹ (below support)

Intraday Exit Guidance: If already holding, consider booking profits near 4,120–4,160 ₹ if momentum slows. Exit immediately if RSI dips below 63 or price falls under 4,050 ₹ with declining volume.

Positive

  • Strong EPS at 60.7 ₹ provides earnings visibility.
  • ROCE (16.5%) and ROE (13.4%) indicate decent operational efficiency.
  • Debt-to-equity ratio at 0.04 reflects very low leverage risk.
  • Price well above 50 DMA (3,533 ₹) and 200 DMA (3,324 ₹), showing strong technical support.
  • Volume (2.79 Lakh) above weekly average (1.78 Lakh), confirming active participation.

Limitation

  • Stock P/E at 82.6 vs industry PE at 37.9 indicates significant overvaluation.
  • PAT dropped sharply (111 Cr. vs 226 Cr.), showing earnings volatility.
  • RSI at 65.7 approaching overbought territory.
  • MACD extremely high (214), suggesting stretched momentum.

Company Negative News

  • Sequential PAT decline highlights weakening profitability.
  • FII holding decreased (-1.11%), showing reduced foreign investor confidence.

Company Positive News

  • DII holding increased (+0.65%), reflecting domestic institutional support.
  • EPS remains strong despite profit decline, supporting valuation premium.

Industry

  • Industry PE at 37.9 is much lower than THERMAX’s 82.6, highlighting valuation risk.
  • Capital goods sector remains cyclical, with demand tied to industrial investment cycles.

Conclusion

⚖️ THERMAX shows short-term technical strength with strong volume and institutional support, but extreme overvaluation and momentum exhaustion limit upside. Suitable only for disciplined intraday trades targeting 4,120–4,160 ₹ with strict stop-loss at 4,020 ₹.

Would you like me to extend this into a capital goods sector overlay comparing THERMAX against peers like ABB, Siemens, and BHEL for clearer benchmarking?

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