THERMAX - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.4

📈 Technical Analysis

• Chart Patterns: THERMAX is trading near its 52-week low (2,867 ₹ vs 2,743 ₹), showing weakness and bearish sentiment.
• Moving Averages: Current price (2,867 ₹) is below both 50 DMA (3,013 ₹) and 200 DMA (3,364 ₹), confirming a downward bias.
• RSI: At 40.6, RSI indicates weak momentum but not yet oversold.
• MACD: Negative at -52.5, signaling bearish continuation.
• Bollinger Bands: Price near lower band, suggesting oversold condition and potential minor rebound.
• Volume Trends: Current volume (75K) is slightly above average weekly volume (70K), showing mild activity but not strong conviction.

🎯 Momentum & Trade Zones

• Support Levels: 2,743 ₹ (recent low) and psychological support at 2,700 ₹.
• Resistance Levels: 3,013 ₹ (50 DMA) and 3,364 ₹ (200 DMA).
• Entry Zone: Accumulate cautiously near 2,750–2,850 ₹ if rebound signals appear.
• Exit Zone: Short-term exit near 3,000–3,100 ₹; medium-term exit near 3,350–3,400 ₹.
• Trend: Stock is currently reversing downward but may consolidate near lows.

✅ Positive

• Strong ROCE (16.5%) and ROE (13.4%).
• Quarterly PAT surged from 46.5 Cr. to 226 Cr. (+109% variation).
• EPS at 54.6 ₹ shows earnings strength.
• Low debt-to-equity ratio (0.04), ensuring financial stability.
• DII holding increased by 2.21%, reflecting domestic institutional support.

⚠️ Limitation

• Stock trading below both 50 & 200 DMA, confirming bearish trend.
• High P/E ratio (58.8) compared to industry average (43.9), suggesting overvaluation.
• Dividend yield at only 0.49%, offering minimal shareholder return.
• RSI weak and MACD negative, showing lack of momentum.

📉 Company Negative News

• FII holding reduced by -2.58%, showing weaker foreign investor confidence.
• Stock has lost momentum with 52-week index at only 6.02%.

📊 Company Positive News

• Quarterly profits improved significantly (+109%).
• DII holding increased, showing domestic support.
• Strong balance sheet with negligible debt.

🏭 Industry

• Industry P/E at 43.9, lower than THERMAX’s 58.8, suggesting premium valuation.
• Sector outlook remains stable with demand for energy and engineering solutions, but valuations stretched.

📝 Conclusion

• THERMAX is in a bearish reversal phase, trading near 52-week lows.
• Oversold signals suggest possible short-term bounce, but fundamentals remain mixed.
• Best strategy: cautious accumulation near 2,750–2,850 ₹ with strict stop-loss; exit near 3,000–3,100 ₹.
• Medium-term outlook cautious; recovery depends on sustaining earnings growth and crossing 3,013–3,364 ₹ resistance levels.