THERMAX - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.6
| 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 |
📈 Chart & Trend: THERMAX is trading well above both its 50 DMA (3,533 ₹) and 200 DMA (3,324 ₹), confirming strong bullish momentum. RSI at 65.7 indicates near overbought levels, while MACD at 214 shows strong bullish crossover. Bollinger Bands are widening, suggesting volatility expansion and continuation of the uptrend.
🔑 Momentum Signals: Current price (4,078 ₹) is holding above support at 3,950–3,980 ₹. Resistance levels are seen at 4,200 ₹ and 4,250 ₹. Volume (2.79L) is above the 1-week average (1.78L), confirming strong participation and momentum.
🎯 Entry Zone: 3,950–3,980 ₹ near support.
💰 Exit Zone: 4,200 ₹ (partial profit) and 4,250 ₹ (full exit).
📊 Trend Status: Strong bullish trend with momentum intact.
Positive
- Strong ROCE (16.5%) and ROE (13.4%) highlight profitability.
- EPS at 60.7 ₹ supports valuation strength.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- Price trading above both 50 DMA and 200 DMA confirms bullish structure.
- Volume above average supports breakout potential.
Limitation
- High P/E (82.6) vs industry PE (37.9) indicates overvaluation.
- Quarterly PAT declined (111 Cr. vs 226 Cr.).
- PEG ratio at 2.37 reflects expensive growth valuation.
- FII holdings reduced (-1.11%), showing reduced foreign confidence.
Company Negative News
- Quarterly earnings dropped significantly.
- FII holdings declined, signaling cautious sentiment.
Company Positive News
- DII holdings increased (+0.65%), showing domestic support.
- Strong 52-week performance (85.4% index level).
- Stock trading near all-time highs, reflecting investor confidence.
Industry
- Industry PE at 37.9 suggests sector trading at moderate valuations compared to THERMAX’s premium.
- Engineering and energy solutions sector benefiting from infrastructure and sustainability demand.
Conclusion
THERMAX is in a strong bullish trend supported by MACD, RSI, and price action above key moving averages. Entry near 3,950–3,980 ₹ is favorable with exits at 4,200–4,250 ₹. While fundamentals remain strong with low debt and solid returns, high valuation and declining quarterly profits limit conviction. Best suited for swing trades with cautious monitoring of earnings trend.