Karvy initiates coverage on Thermax Ltd with a Buy Rating. Order book and revenues to grow at CAGR of 7% and 8.4% during FY15-17E. Boilers and Power EPC & services segment to contribute to over 60% and 20% of revenues by FY17E in the standalone business. Exports business to contribute 35% by FY17E and is setting manufacturing hub in Indonesia for operationalization by FY18. Going forward operating subsidiaries to become potential value creator in economic up cycle. Thermax - First Energy, synergistic effect to play out in long term. We initiate coverage on Thermax with a Buy' rating for a target of Rs.1,239 representing an upside potential of 16% based on standalone FY17E EPS of Rs.33.9 at 33.6x P/E (+1 SD on 1yr forward P/E during FY05-15) and added Book Value (BV) of investments in subsidiaries of Rs.41/share at 1x BV, subsidiaries could incur losses during FY16-17E.