Hold Thermax: target of Rs 4774: ICICI Securities

ICICI Securities's research report on Thermax

Thermax reported unexciting Q1FY25 numbers as revenue grew 13% YoY to INR 21.8bn while EBITDA ascended 6% YoY to INR 1.4bn impacted by a one-off provision of INR 500m in the industrial infra segment. Order inflow (OI) and order book (OB) growth remained soft too; although, the outlook appears brighter with large orders expected from refining, petchem, steel and cement sectors. Thermax is contemplating participating in thermal power plant orders given that the tenders for the same are split to boiler supply levels. Thermal awarding shall remain strong over the next 2–3 years and could be a huge boost to OI in the medium term. Retain HOLD; TP revised to INR 4,774 (from INR 4,406).

Outlook

We maintain our HOLD rating on Thermax with a SOTP-based revised TP of INR 4,774.