Hold Thermax; target of Rs 772: ICICI Securities

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26 Aug, 2025 12:21

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ICICI Securities research report on Thermax

Thermax reported weak execution in Q4FYFY20 in line with our expectations while margins were impacted by higher warranty provision and forex loss. Cashflow was healthy due to reduction in other current assets post completion of the large Dangote order. European subsidiary Danstoker continued to be in loss though there are certain green shoots of revival. Indonesian facility losses reduced during FY20. Overall, the near-term growth environment is challenging, but food processing, pharma, cement and refineries are certain segments in which outlook is healthy.

Outlook

Factoring-in the muted order intake in Q4FY20 and challenging outlook, we cut our earnings by 23.7% and 11.7% for FY21E and FY22E. Maintain HOLD with a revised target price of Rs772 (previously Rs675).

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