Thermax Ltd. Dips 0.39% Despite Intraday Surge: 5 Key Developments This Week

2 February 2026: Weak Start Amid Broader Market Decline

Thermax Ltd. began the week on a subdued note, closing at Rs.2,829.90, down 1.81% from the previous Friday’s close of Rs.2,881.95. This decline was sharper than the Sensex’s 1.03% fall to 35,814.09, reflecting cautious investor sentiment. The volume was relatively low at 5,965 shares, indicating limited buying interest. The broader market weakness set a challenging tone for the stock’s early week performance.

3 February 2026: Intraday Surge and Gap Up Reflect Positive Momentum

On 3 February, Thermax Ltd. staged a remarkable recovery, opening with a significant gap up at Rs.3,050.00, representing a 7.8% gain from the previous close. The stock reached an intraday high of Rs.3,098.45, a 9.49% increase, before settling at Rs.2,948.55, up 4.19% on the day. This performance outpaced the Sensex’s 2.63% gain and the Engineering - Industrial Equipment sector’s 3.35% rise, signalling strong short-term buying interest.

The surge was supported by improved quarterly results announced the same day, showing a 40.2% jump in Profit After Tax to ₹162.46 crores and a 34.01% rise in Profit Before Tax excluding other income. Despite flat revenue growth, these earnings improvements helped fuel optimism. However, the company’s Mojo Score remained at 38.0 with a Sell rating, reflecting caution amid margin volatility and rising leverage.

Technically, the stock traded above its 5-day, 20-day, and 50-day moving averages, indicating short- to medium-term strength, though it remained below longer-term averages. Mixed momentum indicators such as MACD and RSI suggested a tentative recovery rather than a confirmed uptrend.

4 February 2026: Mixed Technical Signals Amid Modest Gains

Thermax Ltd. closed marginally lower at Rs.2,945.85, down 0.09% from the previous day’s close, despite an intraday range extending up to Rs.3,098.45. The stock’s technical momentum showed a shift from bearish to mildly bearish, with daily moving averages still exerting resistance. The MACD indicator was mildly bullish on a weekly basis but bearish monthly, while the RSI remained neutral weekly and bullish monthly, reflecting a complex technical landscape.

Volume was subdued at 4,287 shares, and On-Balance Volume (OBV) readings showed no clear trend, indicating a lack of strong conviction behind price moves. The stock remained below its 52-week high of Rs.4,088, underscoring the challenges in sustaining momentum. Sector headwinds and margin pressures continued to temper enthusiasm despite the recent earnings improvement.

5 February 2026: Profit Taking and Cautious Sentiment Weigh on Price

On 5 February, Thermax Ltd. declined 1.40% to close at Rs.2,904.75 on low volume of 2,762 shares. The stock’s retreat contrasted with the Sensex’s 0.53% fall, signalling relative weakness. Technical indicators remained mixed, with the stock failing to break above key resistance levels. The modest decline reflected profit-taking after the previous day’s gains and ongoing uncertainty about the company’s medium-term prospects amid flat revenue growth and rising debt-equity ratio.

6 February 2026: Week Ends Slightly Lower Amid Mixed Market Signals

Thermax Ltd. closed the week at Rs.2,870.85, down 1.17% on the day and 0.39% for the week, underperforming the Sensex’s 1.51% gain. The stock’s volume was 3,192 shares, reflecting moderate trading interest. Despite the week’s intraday highs and positive earnings news, the stock faced selling pressure in the final sessions, consistent with mixed technical momentum and cautious investor sentiment.

The company’s current Mojo Score of 44.0 and Sell rating, downgraded from Hold in August 2025, highlight ongoing concerns about margin volatility, rising leverage, and subdued return on capital employed. While Thermax’s long-term performance remains strong, recent weeks have underscored the challenges in sustaining short-term gains amid sector headwinds and broader market fluctuations.

Key Takeaways

Positive Signals: Thermax demonstrated strong intraday buying interest on 3 February, with a 7.35% gain and an intraday high of Rs.3,098.45, outperforming both the Sensex and its sector. The company’s quarterly results showed a significant 40.2% rise in PAT and improved cash reserves, reaching ₹1,293.90 crores, supporting liquidity and operational stability. Short-term technical indicators such as weekly MACD and KST showed mild bullishness, suggesting tentative momentum building.

Cautionary Signals: Despite the intraday surge, the stock closed the week slightly lower, underperforming the Sensex by 1.90%. Technical momentum remains mixed, with daily moving averages and longer-term MACD and Bollinger Bands indicating resistance and bearish tendencies. The company’s rising debt-equity ratio (0.36 times) and declining ROCE (14.05%) raise concerns about capital efficiency and leverage. The Mojo Score of 44.0 and Sell rating reflect these fundamental and technical challenges.

Volume and Volatility: Trading volumes fluctuated, peaking on 3 February but declining thereafter, indicating cautious participation. The stock’s high beta of 1.20 contributed to pronounced price swings, underscoring its sensitivity to market catalysts and sector dynamics.

Conclusion

Thermax Ltd.’s week was characterised by sharp intraday gains and a strong earnings report that briefly lifted the stock above Rs.3,000, but the momentum was not sustained through the week’s close. Mixed technical signals and fundamental concerns about margin volatility and leverage tempered investor enthusiasm, resulting in a modest 0.39% weekly decline. While the company’s long-term track record remains robust, near-term challenges persist amid a competitive and cyclical heavy electrical equipment sector. Investors should monitor upcoming technical developments and financial metrics closely as Thermax navigates this transitional phase.

Unlock special upgrade rates for a limited period. Start Saving Now →