Hold Thermax; target of Rs 815: Sharekhan

Sharekhan's research repor on Thermax

In Q1FY2021, Thermax’s revenue performance remained weak due to COVID-led shutdown impacting margins and net profit. Weak order inflow, which was largely on expected lines, and lower execution during the same period helped in lower depletion of the exit order backlog to 1x TTM consolidated revenue. Expect order booking in FY2021 to be lower compared to last year due to expectation of lower large ticket-size orders from segments such as steel, fertiliser, and cement; enquiry pipeline remains positive in food processing, chemical and pharma.

Outlook

We retain our Hold rating on Thermax with an unchanged PT of Rs. 815, factoring lower order booking and challenges pertaining to uncertainties related to execution and productionWe retain our Hold rating on Thermax with an unchanged PT of Rs. 815, factoring lower order booking and challenges pertaining to uncertainties related to execution and production.

For all recommendations report, click here