Investec Securities maintains hold on Thermax, revises target price to Rs 1,095

Investec Securities has maintained hold rating on Thermax in the long term and revised target price to Rs 1,095 from Rs 950. Shares of Thermax ended down 1.7% at Rs 1,050.50 on Friday while BSE Sensex closed 70.21 points up at 40,356.69.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1605.85 crore, up 15.33% from last quarter sales of Rs 1392.45 crore and up 12.48% from last year same quarter sales of Rs 1427.64 crore. The company has reported net profit after tax of Rs 25.70 crore in the latest quarter.


Investment Rationale

The brokerage said Thermax's second quarter results were operationally in line with estimates with Ebitda growing at 18% year-on-year (YoY). The management has indicated new order finalisations continue to get deferred in both domestic and international markets and does not anticipate any large order placement in power/ steel/ fertilizer sectors. The brokerage sees limited positive triggers for the stock in the absence of revival in industrial capex cycle.