Accumulate Thermax, target of Rs 480: Asit C. Mehta

Asit C. Mehta has maintained its accumulate rating on Thermax with a target price of Rs 480 in its July 25, 2008 research report. "Thermax Limited has announced its results for the first quarter ending June 2008 (Q1FY09). Despite moderation in order book at the beginning of the financial year, the company has registered a revenue growth of 8.2% from Rs 7136.4 million in Q1FY08 to Rs 7724.9 million in Q1FY09. The company posted a consolidated net profit of Rs 584.2 million, compared with Rs 556.3 million in the first quarter of 2008, representing a growth of 5%."

"We continue to be positive on the stock and retain our estimates for the FY09 and FY10. At a current market price of Rs 419, the stock trades at PE multiple of 17.8x and 12.2x FY09E and FY10E EPS of Rs. 23.5 and Rs.34.3, respectively. We reiterate our “ACCUMULATE” recommendation for Thermax Ltd. with a target price of Rs 480," says Asit C. Mehta's research report.

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