Sell Thermax, recommends Way2Wealth
Way2Wealth is bearish on Thermax and has recommended sell rating on the stock in its August 13, 2013 research report. According to the research firm, improved performance from its subsidiaries & a major order won continues to be major trigger for the company.
August 22, 2013 / 14:51 IST
Way2Wealth's report on Thermax
"Thermax, consolidated Order inflows for Q1FY14 have grown by 85 percentyoy at Rs 26bn, on account of a major petrochemical order won, worth Rs 17000mn for supply of CFBC boilers to be delivered within 25-29mths. The Energy segment comprises 91 percent & the rest comes from the Environment segment. Effectively its order backlog has grown by 25 percentyoy at Rs 63bn giving a revenue visibility of ~1.2yrs, with 84 percent coming from the Energy segment & remaining from the Environment segment. Consolidated income has declined by 10 percent whereas its PAT has remained flat on account of positive growth from its subsidiaries."Valuations: "Improved performance from its subsidiaries & a major order won continues to be major trigger for Thermax. At its CMP of Rs 580, we maintain our SELL rating on account of higher valuations, with the stock trading at a higher multiple of 20x FY14E EPS of Rs 30," says Way2Wealth research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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