Accumulate Thermax; target of Rs 2913: Geojit

Geojit recommended accumulate rating on Thermax with a target price of Rs 2913 in its research report dated December 01, 2023.

Broker Research

December 01, 2023 / 14:24 IST

Accumulate

Geojit's research report on Thermax

Thermax Ltd (TMX) is a leading energy and environment solutions provider. They offer integrated, innovative solutions in the areas of heating, cooling, power, water & waste management, air pollution control and chemicals. The operating performance in Q2FY24 was strong, with 211bps YoY improvement in EBITDA margin, aided by a better product mix and stabilising commodity prices. In Q2FY24, revenue grew by 11% YoY, led by the industrial (18% YoY) and infra segments (13% YoY), while the green solution and chemical segments witnessed de-growth. The order book grew by 8% YoY in H1FY24, owing to a 5% YoY increase in new orders. TMX expects large orders from refineries in H2FY24. On the international front, the company is receiving a number of inquiries from Africa and the Middle East for waste, energy, and hydrocarbon-related projects, which will aid the order book.

Outlook

We expect the govt’s capex outlay to support clean energy projects to benefit the company’s green energy portfolio. We assign an Accumulate rating with a TP of Rs2,913 and roll forward our valuation based on FY26 EPS at a P/E of 38x.

For all recommendations report, click here