Thermax Ltd. share price target

Domestic enquiry pipeline remains strong from Refinery, Cement and Metals, while for exports market enquiry level is improving. Thermax Ltd (TMX) reported healthy Q2FY22 performance, as execution momentum continued across Energy/Environment/Chemical and grew 19.4%/101.2%/12.4% YoY. Healthy ordering momentum in Refinery, O&G, chemical, F&B, pharma, cement etc, resulted in order inflows of Rs18.6bn (up 67% YoY). During the quarter TMX received its 1st order to set up Bio CNG...

* Numbers till FY18 includes standalone business with boiler & heater business of Thermax, which is now classified as discontinued operations from standalone and transferred to its subsidiary TBWES with effect from October 1, 2019. Hence, they will not be reflected in standalone numbers. Instead, they will be reflected in consolidated numbers. Therefore, they will not be comparable. Hence, we have changed our presentation of historical numbers (FY19, FY20) and forward numbers to consolidated and valued accordingly....

We believe TMX is well placed to capitalize on reviving economic activities in the long run given its 1) strong balance sheet, 2) prudent working capital management and 3) continuity in order inflow with strong tender pipeline. The stock is currently trading at 42.3x/33.2x FY22/FY23E. We maintain Accumulate' rating on stock with TP of Rs1,559 (same as earlier)....

Revenue was in line with our estimate in 1QFY22, with a miss (15%) on operating profit. EBITDA margin stood at 6%, lower than our estimate of 7%, on account of higher commodity costs, an elevated freight rate, and lower productivity owing to COVID-led disruptions. Owing to a miss on operating profit, adjusted PAT came in 21% below our estimate. Order inflows almost tripled to ~INR17b on a low base YoY. However, it stood 13% higher sequentially, with robust orders from Refinery, Cement, and Steel sectors. Order book stood at INR61b (+17% YoY, with a book-to-bill...

EBITDA margin expanded by 406bps YoY to 8.9% due to favourable sales mix, cost rationalisation & operating leverage. Order inflow grew by 57% YoY in Q4FY21 largely due to low base and fresh orders received in Energy segment, while order...

Consolidated revenue came in at | 1574.5 crore, up 19% YoY, 11.6% QoQ (above our estimate of | 1552.9 crore) aided by better execution across segments. Energy segment revenue (~74% of revenue) grew 11.8% to | 1175.3 crore YoY while it was up 10.3% QoQ. Environment segment revenue grew 51.6% to | 301.8 crore and chemical segment revenue came in at | 119 crore, up 23.6%, YoY. EBITDA came in at | 139.6 crore, up 120% YoY and down 5.4% QoQ, aided by cost control measures and better execution amid higher raw material cost. Consequently, EBITDA margin...

Thermax Ltd (TMX) reported a health quarterly performance led by execution pickup across verticals and recovery in industrial activity. Revenue across Energy/ Environment/ Chemical segments grew by 11.8%/ 51.6%/ 24.0% YoY. Despite steep increase in raw material prices, gross margins came in healthy at 48%, led by change in revenue mix. Further order inflows continued its...

Revenue was 15% below our estimate in 4QFY21, with lower miss (6%) on operating profit. This is largely attributable to higher operating leverage and margin uptick. While margin across segments moderated sequentially, it stood higher YoY (barring the Environment segment), owing to improved execution in the Energy segment, higher mix of Specialty Resin in the Chemical segment, and ongoing cost controls. Order inflows grew 57% YoY to INR15b in 4QFY21 after declining for four consecutive quarters. Recovery was seen across sectors like Cement, Metals,...

Q3FY21 revenue registered flat growth at Rs.1,411cr aided by better execution in environment (28% YoY) while chemical & energy segment de-grew by ~5% YoY. EBITDA margin expanded by 243bps YoY to 10.5% due to favourable sales mix, cost rationalisation & operating leverage. Order inflow declined by 4% YoY (1.1x TTM revenue) due to...

Consolidated revenue came in at | 1410.6 crore, which came in flat YoY (above our estimate of | 1319 crore) aided by better execution in environment segment. Energy segment revenue (that contributes ~76% to revenue) fell 4.9% to | 1065.8 crore YoY while environment segment revenue grew 28.4% to | 253.4 crore and chemical segment revenue came in at | 111.3 crore, marginally down 4.7%, YoY. EBITDA came in at | 147.6 crore, up 30.4% YoY aided by cost control measures and favourable mix. Also, EBITDA margin came in at 10.5% registering an improvement of over...