Buy Thermax, target price Rs 2825: LKP Securities

LKP Securities has buy call on Thermax with a target price of Rs 2825. The current market price of Thermax is Rs 2535.05.

Thermax, incorporated in the year 1980, is a Mid Cap company (having a market cap of Rs 30309.19 Crore) operating in Engineering sector.

Thermax key Products/Revenue Segments include Sale of services, Export Incentives, Scrap, Commission, Royalty Income for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 1986.02 Crore, down -16.14 % from last quarter Total Income of Rs 2368.31 Crore and up 18.57 % from last year same quarter Total Income of Rs 1675.02 Crore. Company has reported net profit after tax of Rs 60.34 Crore in latest quarter.

Investment Rationale
The order inflow and pipeline remains strong and the order book at ₹105bn provides healthy visibility ahead. It continues to invest in new products to reap benefits ahead. Going forward, TMX’s growth is expected to be driven by industrial growth and new capacity in various sectors, increasing demand for green solutions to address environmental concerns, and opportunities arising from urbanization and emerging applications. Hence, the brokerage recommend a BUY with a price target of ₹2,825.

Promoter/FII Holdings
Promoters held 61.98 per cent stake in the company as of 30-Jun-2023, while FIIs owned 12.35 per cent, DIIs 15.5 per cent.