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THERMAX - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 19 Mar 26, 09:02 pm

Technical Rating: 4.0

Stock Code THERMAX Market Cap 39,186 Cr. Current Price 3,288 ₹ High / Low 4,092 ₹
Stock P/E 66.6 Book Value 341 ₹ Dividend Yield 0.43 % ROCE 16.5 %
ROE 13.4 % Face Value 2.00 ₹ DMA 50 3,064 ₹ DMA 200 3,209 ₹
Chg in FII Hold -1.08 % Chg in DII Hold 0.89 % PAT Qtr 111 Cr. PAT Prev Qtr 226 Cr.
RSI 63.0 MACD 67.4 Volume 2,37,397 Avg Vol 1Wk 3,41,152
Low price 2,743 ₹ High price 4,092 ₹ PEG Ratio 1.92 Debt to equity 0.04
52w Index 40.4 % Qtr Profit Var 7.11 % EPS 60.7 ₹ Industry PE 33.0

📊 Technical Analysis

  • Chart Patterns: Stock is trading above 50 DMA (₹3,064) and slightly above 200 DMA (₹3,209), showing strength. Support at ₹3,064, resistance around ₹3,350–₹3,500.
  • Moving Averages: Current price (₹3,288) is above both averages, indicating bullish bias.
  • RSI: 63.0 — moderately strong, suggesting bullish momentum but not yet overbought.
  • MACD: 67.4 — bullish crossover, momentum positive.
  • Bollinger Bands: Price near upper band, showing strong buying interest.
  • Volume Trends: Current volume (2.37L) below 1-week average (3.41L), suggesting reduced participation but steady accumulation.

📈 Momentum & Signals

  • Short-term Momentum: Strong with bullish MACD and RSI above 60.
  • Entry Zone: ₹3,200–₹3,250 (near support).
  • Exit Zone: ₹3,350–₹3,500 (first resistance), ₹3,800 (next resistance).
  • Trend Status: Trending upward with bullish signals; reversal risk only if price falls below ₹3,064.

✅ Positive

  • Strong EPS at ₹60.7, reflecting profitability.
  • ROE at 13.4% and ROCE at 16.5% show efficient capital use.
  • Low debt-to-equity ratio (0.04) indicates financial stability.
  • PEG ratio at 1.92 suggests reasonable valuation relative to growth.

⚠️ Limitation

  • High P/E ratio (66.6) compared to industry PE (33.0), indicating premium valuation.
  • Quarterly PAT dropped significantly (₹111 Cr vs ₹226 Cr), showing earnings volatility.
  • FII holdings decreased by -1.08%, reflecting reduced foreign investor confidence.

📰 Company Negative News

  • PAT halved compared to previous quarter, raising concerns about earnings consistency.
  • Stock corrected from 52-week high of ₹4,092 to current ₹3,288.

🌟 Company Positive News

  • Quarterly profit variation improved by 7.11%, showing operational resilience despite decline.
  • DII holdings increased by 0.89%, reflecting domestic investor confidence.
  • Strong fundamentals with low debt and consistent ROE/ROCE.

🏭 Industry

  • Industry PE at 33.0, lower than company PE (66.6), indicating THERMAX trades at a premium.
  • Engineering and energy solutions sector remains strong with demand for sustainable technologies.

🔎 Conclusion

  • THERMAX is trending upward with strong technical signals.
  • Short-term traders may consider entry near ₹3,200–₹3,250 with exit around ₹3,350–₹3,500.
  • Breakout above ₹3,500 could trigger rally towards ₹3,800.
  • Long-term investors should weigh premium valuation against strong fundamentals and sector growth potential.

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