Neutral on Thermax, target price Rs 710: Motilal Oswal
Thermax Ltd., incorporated in the year 1980, is a Mid Cap company (having a market cap of Rs 9073.75 Crore) operating in Engineering sector.
By ETMarkets.com | Updated:
Getty Images
Promoters held 62 per cent stake in the company as of June 30, 2020, while FIIs held 16.5 per cent, DIIs 14.4 per cent and public and others 7.2 per cent.
Motilal Oswal has given neutral rating to Thermax with a target price of Rs 710. The share price moved up by 1.86 per cent from its previous close of Rs 750.70. The stock’s last traded price is Rs 764.65.
Thermax Ltd., incorporated in the year 1980, is a Mid Cap company (having a market cap of Rs 9073.75 Crore) operating in Engineering sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 664.94 Crore, down 49.74 % from last quarter Sales of Rs 1322.96 Crore and down 52.25 % from last year same quarter Sales of Rs 1392.45 Crore. The Company reported net profit after tax of Rs -15.27 Crore in latest quarter.
Investment Rationale The brokerage has cut its FY21/FY22E EPS estimates by 8%/6% on account of lower order inflow assumption. It estimates revenue/EBITDA/adj. PAT CAGR of 2%/11%/31% over FY20-22E, factoring in improved performance from Danstoker, tax rate rationalization, as well as the low base of FY20 as TMX has seen disproportionate impact of COVID-19. Based on 22x Mar’22E EPS, it has arrived at TP of INR 710 (prior: INR757).
Promoter/FII Holdings Promoters held 62 per cent stake in the company as of June 30, 2020, while FIIs held 16.5 per cent, DIIs 14.4 per cent and public and others 7.2 per cent.
