Thermax Ltd. share price target

EBITDA margin declined by 346bps YoY to 7% due to higher commodity prices and an increase in other expenses. The company expects margin pressure is likely to sustain as recent FGD orders were booked after 9 months delay and difficulty in price hike due to high competition in chemical business. The current premium valuation and headwinds on margins, implying limited room for further upside in the near term. Therefore, we revise our rating to SELL from Accumulate and value TMX at a P/E of 35x on FY24E EPS with a TP of Rs1,700....

Thermax Ltd. (TMX) reported a healthy revenue growth of 14.5% YoY, led by growth across all segment, while profitability was impacted due to higher commodity price and freight cost. Order inflow grew 57% YoY to Rs24.6bn, including FGD orders worth Rs8bn in Q3FY22. Order book stands strong at...

3QFY22 snapshot: Revenue grew 15% YoY to INR16b, in line with our estimate. EBITDA declined 23% YoY to INR1.1b, 26% below our estimate. Adj. PAT decreased 24% YoY to INR795m, 27% below our estimate. Order...

TMX reported a top-line growth of 29% YoY in Q2FY22 led by robust execution in Environment (101% YoY) & Energy segment (19% YoY). EBITDA margin improved by 53bps YoY to 7.5% due to favourable sales mix, cost rationalisation & operating leverage....