Thermax Ltd. share price target

Management indicates decent order enquiries majorly from Food, Pharma, Chemicals, Cement, Refineries and Steel sectors. Thermax Ltd (TMX) reported decent quarterly performance led by execution ramp up and cost control measures. Revenue came flat YoY led by growth in environment segment (up, 28% YoY), while Energy/Chemical segment degrew by 5% YoY each. Margins expanded by 256bps led by lower raw cost and better cost rationalization measures. One-time exceptional item...

TMX's 3QFY21 revenue was in line with our estimate, with higher beat on operating profit owing to favorable revenue mix and higher volume. Margin beat was across segments, with higher margin in the Energy segment due to partial execution of a high margin international order. Order inflows declined 3% YoY in 3QFY21, with order pipeline slightly higher as compared to the same period last year. Recovery was seen across sectors like Cement, Steel, Distilleries, F&B;, and Pharmaceuticals. In 9MFY21, order inflows stood at INR32.9b, down 28% YoY....

Consolidated revenue was at | 1141.2 crore, down 28.9% YoY (below our estimate of | 1191.9 crore) on slower execution. Energy segment revenue (contributing ~77.5% to revenue) fell 33.9% to | 885.8 crore YoY while environment segment revenue fell 13.5% to | 155.9 crore, chemical segment revenue was at | 114.5 crore, marginally up 3.6% YoY. However, EBITDA margin was better-than-expected at 7.0% (vs. our estimate of 3.6%) posting a decline of mere 120 bps YoY. Reported PAT came in at | 31.2 crore, up 21.5% due to tax adjustments in base quarter and impacted by...

assets of Boiler works and provision towards closure of German subsidiary claims. Ordering activity was muted across segment resulting into weak order inflows of Rs11bn. OB stands at Rs52bn providing revenue visibility...

Q1FY21 revenue declined by 52% YoY owing to slower execution due to Covid led lock down. Reported EBITDA loss of Rs11cr due to non-absorption of fixed overhead expenses along with lower volume of turnover. Order inflow declined by 52% YoY due to subdued inflows in...

Consolidated revenue came in at | 665 crore, down 52.2% YoY (vs. our estimate of | 716.4 crore) on the back of slower execution owing to covid19 lockdowns. Energy segment revenue (that contributes ~75% to revenue) fell 57% to | 500.4 crore YoY while environment segment revenue fell 43% to | 83.9 crore and chemical segment revenue was at | 84.3 crore, down 13.8%, YoY. It posted a loss of | 11.4 crore at the EBITDA level (vs. EBITDA of | 99.1 crore in Q1FY20), owing to higher employee expenses, other operating expenses and less booking of revenue. Consolidated loss after tax came in at | 15.3 crore (vs. PAT of | 62.8 crore in Q1FY20), partially impacted...

Order inflows are expected to remain challenged in medium term as industrial/private capex would be on hold mode. Though the real magnitude of outbreak and economy lockdown is difficult to assess, we believe near to medium term business outlook will remain challenging. Thermax's strong balance sheet and strict working capital management style would help survive current economic environment. The stock is currently trading at...

Weak order inflows may impact near term execution... Thermax Ltd (TMX) is a leading energy and environment solutions provider. They offer integrated innovative solutions in the areas of...

an opportunity of increasing its international deal win share especiallyinmarketslikeEurope,LATAM&Africa. We derive comfort from TMX's proven ability to emerge strongeraftereverydownturnduetostrongcashflowcontrol...

Consolidated revenue came in at | 1323 crore, down 36.2% YoY (vs. our estimate of | 1300 crore) on the back of slower execution owing to Covid-19 lockdowns. Energy segment revenue declined 38.2% to | 1051 crore YoY while environment segment revenue declined 25.6% to | 199.1 crore and chemical segment revenue came in at | 96.3 crore, down 6.1% YoY. Consolidated EBITDA came in at | 63.6 crore, down 62.8% YoY, owing to higher employee expenses and other operating expenses. Consequently, EBITDA margin declined 340 bps to 4.8% YoY. Consolidated PAT came in at...