Accumulate Thermax; target of Rs 4096: Asit C Mehta

Asit C Mehta recommended Accumulate rating on Thermax with a target price of Rs 4096 in its research report dated February 09 2024.

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February 28, 2024 / 15:01 IST

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Asit C Mehta report on Thermax

Thermax Limited (THERMAX) is a multinational engineering conglomerate that is involved in clean air, clean energy, and clean water solutions. Headquartered in Pune, it has emerged as a leading conglomerate in the energy and environment sector. The company has strategically spread its operations to markets worldwide and catering to a gamut of industries. The Company’s portfolio includes boilers and heaters, absorption chillers/ heat pumps, power plants, solar equipment, air pollution control equipment/ system, water and waste recycle plants, ion exchange resins and performance chemicals, and related services. THERMAX operates globally through 34 international offices, 22 domestic offices, and 14 manufacturing facilities of which 10 are in India and one each in Denmark, Indonesia, Poland, and Germany. The company’s presence spans in terms of installation in 90+ countries and it supports customers through an extensive sales and service network spread over Asia, South East Asia, the Middle East, Africa, Europe, and America. The group consists of 17 wholly-owned domestic subsidiaries and 20 wholly-owned overseas subsidiaries.

Outlook

Hence, we recommend Thermax Limited with a target price of Rs 4096 based on FY26E EPS of Rs 60.24 with a forward PE valuation multiple of 68x. It looks like a value buy with growth potential for medium to long-term investment. Hence, we recommend ACCUMULATE rating for the long term.

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