THERMAX - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | THERMAX | Market Cap | 35,266 Cr. | Current Price | 2,958 ₹ | High / Low | 4,092 ₹ |
| Stock P/E | 60.0 | Book Value | 341 ₹ | Dividend Yield | 0.47 % | ROCE | 16.5 % |
| ROE | 13.4 % | Face Value | 2.00 ₹ | DMA 50 | 2,961 ₹ | DMA 200 | 3,251 ₹ |
| Chg in FII Hold | -1.08 % | Chg in DII Hold | 0.89 % | PAT Qtr | 111 Cr. | PAT Prev Qtr | 226 Cr. |
| RSI | 52.2 | MACD | -20.5 | Volume | 1,23,324 | Avg Vol 1Wk | 1,59,786 |
| Low price | 2,743 ₹ | High price | 4,092 ₹ | PEG Ratio | 1.72 | Debt to equity | 0.04 |
| 52w Index | 16.0 % | Qtr Profit Var | 7.11 % | EPS | 60.7 ₹ | Industry PE | 40.7 |
📊 THERMAX shows strong fundamentals with low debt, decent ROCE/ROE, and healthy EPS. However, the stock trades at a premium valuation compared to industry PE, faces declining FII interest, and has weak momentum signals. It is a moderately good candidate for swing trading with cautious positioning.
✅ Optimal Entry Price: Around 2,900–2,940 ₹ (near support close to 50 DMA)
🚪 Exit Strategy: If already holding, consider exiting near 3,150–3,200 ₹ (resistance zone close to 200 DMA).
Positive
- EPS of 60.7 ₹ indicates strong earnings power.
- Low debt-to-equity (0.04) ensures financial stability.
- ROCE (16.5%) and ROE (13.4%) reflect decent efficiency.
- Book value of 341 ₹ provides valuation support.
- DII holdings increased (+0.89%), showing domestic institutional confidence.
Limitation
- High P/E (60.0) compared to industry PE (40.7), suggesting overvaluation.
- Quarterly PAT declined (111 Cr vs 226 Cr), showing inconsistency.
- MACD negative (-20.5) indicates bearish momentum.
- RSI at 52.2 is neutral, not strongly oversold.
- Trading volume lower than weekly average, reflecting reduced participation.
Company Negative News
- Decline in FII holdings (-1.08%) shows reduced foreign investor confidence.
- Quarterly profit dropped significantly compared to previous quarter.
Company Positive News
- EPS remains strong despite profit decline.
- DII holdings increased, reflecting domestic support.
- PEG ratio of 1.72 suggests growth potential relative to valuation.
Industry
- Industry PE at 40.7 is lower, highlighting THERMAX’s premium valuation.
- Engineering and energy solutions sector remains in demand with infrastructure and sustainability focus.
Conclusion
⚖️ THERMAX is a fundamentally stable company with strong earnings and low debt, but technical indicators show weakness. For swing trading, entry near 2,900–2,940 ₹ offers a safer risk-reward setup, with exit near 3,150–3,200 ₹. Caution is advised due to premium valuation and declining foreign investor interest.