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Last Updated : Nov 19, 2019 11:36 AM IST | Source: Moneycontrol.com

Hold Thermax target of Rs 1195: Sharekhan

Sharekhan recommended Hold rating on Thermax with a target price of Rs 1195 in its research report dated November 14, 2019.

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Sharekhan's research report on Thermax


In Q2FY20, Thermax achieved steady execution and operating margins improved. A higher effective tax rate due to write-down of deferred tax assets and lower other income dragged net profit. Weak order inflow barring one large FGD order for H1FY2020 and strong execution during the same period depleted the exit order backlog to 0.8x TTM consolidated revenues. Management remains cautious on order inflows and will focus on short-cycle projects to replenish order book, while big-ticket size capex may take time to recover. Absence of meaningfully pick up in order inflows in coming quarters could pose risk to revenue estimates ahead.


Outlook


We retain our Hold rating on Thermax with an unchanged PT of Rs. 1,195 due to cautious outlook in order tendering.


For all recommendations report, click here


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First Published on Nov 19, 2019 11:36 am
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