Broker’s call: Thermax (Accumulate)

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Target: INR 2935

CMP: INR 2400.95

Thermax Ltd Provides equipment solutions and services in the fields of energy and environment which include heating and cooling, power and water, waste management, air pollution control and chemicals. The company’s focus on environmentally friendly energy and solutions and products has led to growth fueled by changing emission standards and growing demand for green energy solutions.

Thermax’s future is closely aligned with the needs of a cleaner, greener, and healthier world. The company adheres to its philosophy of “conserving resources, preserving the future” with more sustainable projects in clean air, clean energy and clean water.

We believe Thermax is well positioned to take advantage of these opportunities. Going forward, we expect the Company’s revenue to grow at a compound annual growth rate of approximately 9.3 percent over FY23 – FY26. We recommend Thermax with a price target of $2,935 based on FY26 EPS of $58.7 with a forward multiple of PE valuation. 50.

Seems like a value buy with growth potential for a medium to long term investment. We recommend compiling the rating for the long haul.