THERMAX - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.3

📉 THERMAX is currently in a consolidation phase with neutral momentum and weak volume support. Entry zone: ₹3,180–₹3,215; exit zone: ₹3,265–₹3,310. Watch for breakout above 50-DMA with volume confirmation.

📊 Technical Overview

• Price Action: Trading at ₹3,215, slightly below 50-DMA (₹3,268) and well below 200-DMA (₹3,526), indicating medium-term weakness.
• RSI (48.8): Neutral zone, suggesting lack of strong momentum in either direction.
• MACD (0.50): Mild bullish crossover, but not supported by volume.
• Bollinger Bands: Price near mid-band, indicating range-bound movement.
• Volume: Significantly below 1-week average, showing weak participation and low conviction.
• Support Zones: ₹3,180 (S1), ₹3,100 (S2)
• Resistance Zones: ₹3,265 (R1), ₹3,310 (R2)

✅ Positive

• Low debt-to-equity ratio (0.02) ensures strong financial stability.
• ROCE (16.5%) and ROE (13.4%) reflect efficient capital utilization.
• EPS of ₹44.7 supports long-term valuation strength.
• MACD crossover hints at potential short-term recovery.

⚠️ Limitation

• Stock P/E (82.7) is significantly higher than industry average (51.3), indicating overvaluation.
• Quarterly PAT dropped sharply from ₹205 Cr. to ₹46.5 Cr., a 46% decline.
• Volume trends are weak, limiting breakout potential.
• 52-week performance up only 11.8%, lagging sector peers.

📉 Company Negative News

• FII holdings declined by -2.58%, reflecting reduced foreign investor confidence.
• Sharp drop in quarterly profit signals operational or margin pressure.

📈 Company Positive News

• DII holdings increased by +2.21%, showing domestic institutional support.
• Strong order book in energy and environment segments supports long-term growth outlook.

🏢 Industry

• Industrial engineering sector benefits from infrastructure and clean energy investments.
• Industry P/E of 51.3 reflects high growth expectations across peers.

🧭 Conclusion

• THERMAX is consolidating with neutral momentum and weak volume trends.
• Entry zone: ₹3,180–₹3,215; exit zone: ₹3,265–₹3,310 for short-term trades.
• Long-term investors should monitor earnings recovery and breakout above 200-DMA for confirmation.