THERMAX - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.5

📊 THERMAX is currently trading at ₹2,867, below both its 50 DMA (₹3,013) and 200 DMA (₹3,364), reflecting weak technical momentum. RSI at 40.6 suggests the stock is approaching oversold territory, while MACD at -52.5 indicates bearish sentiment. The optimal entry price would be near ₹2,800–₹2,850, close to support levels. If already holding, consider exiting around ₹3,100–₹3,200, where resistance is expected.

✅ Positive

• 📈 Strong ROCE (16.5%) and ROE (13.4%), showing efficient capital utilization
• 💰 Very low debt-to-equity ratio (0.04), ensuring financial stability
• 📊 EPS at ₹54.6, reflecting consistent profitability
• 📈 Quarterly PAT surged from ₹46.5 Cr. to ₹226 Cr., a 109% improvement
• 📊 DII holding increased by 2.21%, showing strong domestic institutional support

⚠️ Limitation

• 📉 Current price below both 50 DMA and 200 DMA, confirming bearish trend
• 📊 High P/E ratio (58.8) compared to industry average (43.9), suggesting overvaluation
• 📉 Dividend yield at 0.49%, offering minimal shareholder return
• 📉 52-week index at 6.02%, reflecting poor performance compared to peers

🚨 Company Negative News

• 📉 FII holding decreased by -2.58%, showing reduced foreign investor confidence
• 📉 Stock trading far below its 52-week high of ₹4,808, indicating weak sentiment

🌟 Company Positive News

• 📈 Strong quarterly profit growth (+109%) highlights operational improvement
• 📊 EPS at ₹54.6 supports valuation despite high P/E
• 📈 DII inflows (+2.21%) provide stability against FII outflows

🏭 Industry

• 📊 Industry P/E at 43.9 is lower than THERMAX’s, suggesting peers may be more attractively priced
• 🌐 Capital goods and engineering sector remains resilient with demand from infrastructure and energy projects

📌 Conclusion

THERMAX is a moderate swing trade candidate. While fundamentals are strong with profit growth and low debt, technicals remain weak with bearish signals. Entry is best near ₹2,800–₹2,850, while exit should be considered around ₹3,100–₹3,200. Traders should monitor RSI and MACD trends closely before committing.

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