Get App
Last Updated : May 29, 2019 10:00 PM IST | Source:

Buy Thermax; target of Rs 1170: ICICI Direct

ICICI Direct is bullish on Thermax has recommended buy rating on the stock with a target price of Rs 1170 in its research report dated May 24, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Thermax

Thermax reported standalone revenues at Rs 1889.6 crore registering robust growth of 44.2% YoY (on a proforma basis) while consolidated revenues grew 43.7% to Rs 2073.7 crore on a YoY basis. EBITDA came in at Rs 175.7 crore, up 17.2% YoY (vs. our estimate of Rs 176.1 crore) while EBIDTA margins declined 215 bps to 9.3% on a YoY basis owing to more than expected increase in total operating expenses. PAT came in at Rs 112.9 crore, which grew 31.7% YoY while adjusted PAT grew 55.7% to Rs 133.5 crore. The consolidated order inflow for the quarter was at Rs 1157 crore (Rs 1599 crore in Q4FY18) on a YoY basis due to ongoing sluggishness in new investments in several sectors while standalone order inflow was at Rs 717 crore. Consolidated order book was at Rs 5370 crore, down 6.0% YoY.


With expected uptick in domestic order inflows and recovery in international order inflows through geographic diversification, order backlog is expected to improve further. Thermax may continue growth momentum on revenue front with expected CAGR of 10.3% in FY19-21E. Consequently, with expected margin recovery in medium term and normalization of tax rate, PAT is expected to grow at a CAGR of 21.6% over FY19-21E. We continue to maintain our BUY rating with a revised target price of Rs 1170/share.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on May 29, 2019 10:00 pm
Follow us on
Available On
PCI DSS Compliant