Top takeaways from 1QFY17: Thermax’s 1QFY17 standalone earnings (Rs 452mn; ?10% yoy) were materially below our and consensus estimates. The company disappointed on all metrics.Order inflow declined 19% yoy to Rs 8.2bn on weak domestic end markets coupled with certain deferrals in the international market, which should flow through in 2Q. Management highlighted that the outlook on large domestic orders from key sectors such as metals, power and cement continues to be weak over the next 12 months but expects ordering in the hydrocarbon sector to pick up pace in FY18. Current orders are driven by noncore sectors such as food processing and paint.Phillip Capital maintain Sell rating with a target price of Rs 700 (Rs 615 earlier), as the current stock valuations at 33x FY18 PE look expensive considering a modest 10% CAGR in FY16?18 earnings and RoE’s of 11?12%.