THERMAX - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.0
| Stock Code | THERMAX | Market Cap | 34,344 Cr. | Current Price | 2,886 ₹ | High / Low | 4,092 ₹ |
| Stock P/E | 59.2 | Book Value | 341 ₹ | Dividend Yield | 0.49 % | ROCE | 16.5 % |
| ROE | 13.4 % | Face Value | 2.00 ₹ | DMA 50 | 2,967 ₹ | DMA 200 | 3,261 ₹ |
| Chg in FII Hold | -1.08 % | Chg in DII Hold | 0.89 % | PAT Qtr | 226 Cr. | PAT Prev Qtr | 46.5 Cr. |
| RSI | 44.9 | MACD | -31.0 | Volume | 44,243 | Avg Vol 1Wk | 1,01,367 |
| Low price | 2,743 ₹ | High price | 4,092 ₹ | PEG Ratio | 1.70 | Debt to equity | 0.04 |
| 52w Index | 10.6 % | Qtr Profit Var | 109 % | EPS | 54.6 ₹ | Industry PE | 35.4 |
📊 Chart Patterns: THERMAX is trading at 2,886 ₹, below both 50 DMA (2,967 ₹) and 200 DMA (3,261 ₹). The price is closer to its 52-week low (2,743 ₹) than its high (4,092 ₹), reflecting weakness and a corrective phase.
📈 Moving Averages: Current price is under both short-term and long-term averages, confirming bearish sentiment. The 50 DMA is below the 200 DMA, signaling a prolonged downtrend.
📉 RSI: At 44.9, RSI suggests neutral-to-weak momentum, leaning towards oversold but not yet at reversal levels.
📉 MACD: Negative at -31.0, showing bearish divergence and lack of strong buying signals.
📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and potential short-term support.
📊 Volume Trends: Current volume (44k) is lower than average weekly volume (101k), suggesting reduced participation and weak investor interest.
📌 Momentum Signals: Short-term momentum remains weak. Support lies around 2,740–2,760 ₹, while resistance is near 2,960–3,000 ₹.
🎯 Entry Zone: 2,750–2,800 ₹ (near support, only for short-term traders with strict stop-loss).
🎯 Exit Zone: 2,960–3,000 ₹ (near 50 DMA resistance).
🔎 Trend Status: The stock is consolidating with bearish bias, not yet showing reversal signals.
Positive
- EPS of 54.6 ₹ indicates profitability.
- Quarterly PAT surged from 46.5 Cr. to 226 Cr. (109% growth).
- Low debt-to-equity ratio (0.04) ensures financial stability.
- Book value of 341 ₹ provides strong asset backing.
Limitation
- Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
- High P/E ratio (59.2) compared to industry PE (35.4) suggests overvaluation risk.
- 52-week performance index at 10.6% indicates underperformance.
- Dividend yield of 0.49% is relatively low.
Company Negative News
- FII holdings decreased by -1.08%, showing reduced foreign investor confidence.
- Stock price corrected sharply from 4,092 ₹ high to current levels.
Company Positive News
- DII holdings increased by 0.89%, reflecting domestic institutional support.
- Quarterly PAT growth signals improving operational efficiency.
Industry
- Industry PE at 35.4 suggests moderate valuations compared to THERMAX’s higher P/E.
- Engineering and energy sector remains stable with long-term growth potential.
Conclusion
⚠️ THERMAX is consolidating with a bearish bias, trading below key moving averages and showing weak momentum. Short-term traders may consider entry near 2,750–2,800 ₹ with strict stop-loss, targeting 2,960–3,000 ₹ resistance. Long-term investors should wait for a clear reversal above 2,967 ₹ (50 DMA) with sustained volume before fresh positions.
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