Buy Thermax; target of Rs 1685: ICICI Direct

ICICI Direct is bullish on Thermax has recommended buy rating on the stock with a target price of Rs 1685 in its research report dated May 27, 2021.

Broker Research

June 10, 2021 / 11:43 IST

26 Aug, 2025 12:21

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ICICI Direct's research report on Thermax

Consolidated revenue came in at Rs 1574.5 crore, up 19% YoY, 11.6% QoQ (above our estimate of Rs 1552.9 crore) aided by better execution across segments. Energy segment revenue (~74% of revenue) grew 11.8% to Rs 1175.3 crore YoY while it was up 10.3% QoQ. Environment segment revenue grew 51.6% to Rs 301.8 crore and chemical segment revenue came in at Rs 119 crore, up 23.6%, YoY. EBITDA came in at Rs 139.6 crore, up 120% YoY and down 5.4% QoQ, aided by cost control measures and better execution amid higher raw material cost. Consequently, EBITDA margin came in at 8.9% (vs. our estimate of 9.9%). Adjusted PAT came in at Rs 107.3 crore, up 3.4% QoQ partly aided by higher other income and lower effective tax rate.

Outlook

We expect revenue, EBITDA CAGR of 18.8%, 33.4%, respectively, in FY21-23E, amid low base. We revise our target price to Rs 1685 (earlier Rs 1310), 42x FY23E EPS and revise our rating from HOLD to BUY.

For all recommendations report, click here