Thermax rises 7% as a result of optimistic broker sentiment

 Thermax rises 7% as a result of optimistic broker sentiment

Thermax rises 7% as a result of optimistic broker sentiment

A 'buy' call is available on Thermax stock from Jefferies, which ranks it among its best industrial companies. He said that Thermax should gain from its transition to a clean energy-focused business.

According to Jefferies, Thermax should gain from its transition to a clean energy-focused business.

In early trading on December 18, Thermax shares increased by more than 7% as the brokerage maintained its bullish outlook on the company after an analysts' meeting.

Due to a more diverse project mix and stronger overseas sales, analysts anticipate that the firm, whose margins increased in the September quarter, will continue to improve over the following four quarters.

At 12:08 PM, Thermax was trading on the National Stock Exchange (NSE) at Rs 2,987, up 5% from its last trading price. The benchmark Nifty has risen 17% this year, while the stock has climbed 52%.

Thermax is one of the best industrial stocks according to international stockbroker Jefferies because of the company's excellent order intake during the second quarter.

Jefferies said that Thermax should profit from its shift to become a clean energy-focused firm and issued a "buy" recommendation on the shares, with a target price of Rs 3,800.

Thermax recently started to offer flexi fuel boilers, which can handle various biomass fuel types; Thermatron, an electric heater that lowers carbon footprint in heating applications; Bio CNG; Zero liquid discharge; software solutions for asset performance tracking; and exhaust heat-based cooling solutions for heavy-duty commercial vehicles.

ICICI Securities analysts claim that there is little competition in the new market.

"While almost all of the new items show great promise, it is now impossible to determine their potential for income. With a target price of Rs 3,045, we have a 'Add' recommendation on Thermax. According to the local brokerage, the stock is selling at 39x FY26E EPS of Rs 70 per share.

Thermax has seen an improvement in its order flow after the announcement of a sizable deal worth Rs 500 crore for bio-CNG facilities.

Domestic brokerage Motilal Oswal anticipates that, thanks to a robust order book (worth Rs. 10,300 crore), the business would generate income at a 14% compound annual growth rate in FY23–26. It projects a 21% rise in profits as a result of improved margins and rising sales.

We have valued Thermax at 38 times its December 25th projected profits, plus value from green solutions. With a target price of Rs 2,740, we retain our neutral rating on the stock and search for better entry possibilities," the brokerage said. carry out "its report."

Prabhudas Lilladher analysts feel that Thermax is in a good position to profit from the increasing focus on energy transition and de-carbonization initiatives because of its technical know-how, strong balance sheet, prudent working capital management, and sustainable green industrial solutions in bioenergy, chemicals, water, heating and cooling, and bioenergy.

"We maintain our 'Hold' rating with a target price of Rs 2,771 (same as earlier), valuing it at a PE of 43x Sep'25E (same as earlier)," it said. The brokerage expressed optimism about the company's long-term potential while keeping a neutral view for the foreseeable future due to the high valuations.