THERMAX - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.4
| Stock Code | THERMAX | Market Cap | 38,555 Cr. | Current Price | 3,227 ₹ | High / Low | 4,092 ₹ |
| Stock P/E | 65.6 | Book Value | 341 ₹ | Dividend Yield | 0.43 % | ROCE | 16.5 % |
| ROE | 13.4 % | Face Value | 2.00 ₹ | DMA 50 | 3,077 ₹ | DMA 200 | 3,210 ₹ |
| Chg in FII Hold | -1.08 % | Chg in DII Hold | 0.89 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 226 Cr. |
| RSI | 58.2 | MACD | 64.5 | Volume | 2,36,969 | Avg Vol 1Wk | 4,04,701 |
| Low price | 2,743 ₹ | High price | 4,092 ₹ | PEG Ratio | 1.88 | Debt to equity | 0.04 |
| 52w Index | 35.9 % | Qtr Profit Var | 7.11 % | EPS | 60.7 ₹ | Industry PE | 32.1 |
📊 Analysis: THERMAX shows moderate swing trade potential. Fundamentals are stable with EPS of 60.7 ₹, strong ROCE (16.5%), ROE (13.4%), and very low debt-to-equity (0.04). However, valuation is stretched with a high P/E of 65.6 compared to industry PE of 32.1. Technicals are mixed — RSI at 58.2 indicates neutral-to-positive momentum, MACD at 64.5 is bullish, and price is above 50 DMA (3,077 ₹) but slightly below 200 DMA (3,210 ₹). Quarterly PAT dropped (226 Cr. → 111 Cr.), showing short-term weakness. Liquidity is moderate, with FII holding down (-1.08%) but DII holding up (+0.89%).
🎯 Optimal Entry: Entry is favorable near 3,150–3,200 ₹ support zone, aligning with 200 DMA levels.
🚪 Exit Strategy: If already holding, consider exiting near 3,350–3,400 ₹ resistance levels. If price fails to sustain above 3,200 ₹, an earlier exit is advisable to protect gains.
✅ Positive
- EPS of 60.7 ₹ supports valuation strength.
- Strong ROCE (16.5%) and ROE (13.4%).
- Low debt-to-equity ratio (0.04) ensures financial stability.
- MACD positive (64.5) indicates bullish momentum.
⚠️ Limitation
- High P/E (65.6) compared to industry average (32.1).
- Quarterly PAT declined sharply (226 Cr. → 111 Cr.).
- Price slightly below 200 DMA, showing resistance.
- FII holding decreased (-1.08%).
📰 Company Negative News
- Sequential decline in quarterly profitability.
- Reduced foreign investor confidence (FII holding down).
🌟 Company Positive News
- DII holding increased (+0.89%), showing domestic institutional support.
- Strong fundamentals with consistent EPS and efficiency ratios.
- PEG ratio of 1.88 suggests growth potential despite high valuation.
🏭 Industry
- Industry PE is 32.1, while THERMAX trades at 65.6 — indicating premium valuation.
- Peers with lower PE may offer better margin-of-safety, but THERMAX’s efficiency supports its premium.
📌 Conclusion
THERMAX is a moderate swing trade candidate. Entry near 3,150–3,200 ₹ offers a safer margin, while exit near 3,350–3,400 ₹ is advisable for holders. Fundamentals are strong, but valuation is stretched and profitability has weakened. Suitable for swing traders who value efficiency and stability but should be cautious of high valuation risk.
Would you like me to extend this into a capital goods sector basket overlay comparing THERMAX with peers like ABB India, Siemens, and Cummins to highlight relative strength and margin-of-safety clarity?