Sharekhan's research report on Thermax
Thermax Limited’s (Thermax) consolidated Q1 performance was in-line with estimates, however it was impacted by lower profitability despite healthy topline growth. Order inflow witnessed 36% y-o-y rise to Rs. 2,310 crore, while order book improved ~56% y-o-y to Rs. 9,554 crore. Order intake expectations are high, given strong enquiry inflow from refinery, steel, power, and chemical segments. Margins are expected to improve in the coming quarters on account of price hikes in products/services business, execution of better margin orders, and stability in commodity prices.
We maintain Buy on Thermax with an unchanged PT of Rs. 2,400, given strong revenue visibility, promising order pipeline, and expectations of improving margin trajectory going forward.
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