Thermax . Stock Falls to 52-Week Low of Rs.2893.2 Amidst Underperformance

The recent price movement places Thermax . below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend in the short to long term. This decline contrasts with the broader market, where the Sensex opened flat and is currently trading marginally lower by 0.01% at 84,664.32 points, remaining close to its 52-week high of 85,290.06.

Over the past year, Thermax . has recorded a return of -37.28%, significantly underperforming the Sensex, which has shown a positive return of 9.13% over the same period. The stock’s 52-week high was Rs.5159.8, highlighting the extent of the recent price contraction.

Thermax . operates within the Heavy Electrical Equipment industry and sector, holding a market capitalisation of approximately Rs.35,128 crores. It constitutes 19.06% of the sector’s market cap, making it the largest company in this space. The company’s annual sales stand at Rs.10,224.12 crores, representing 15.99% of the industry’s total sales.

Financial metrics for Thermax . reveal a mixed picture. The company reported a quarterly profit after tax (PAT) of Rs.119.66 crores, reflecting a decline of 39.3% compared to the previous corresponding period. The return on capital employed (ROCE) for the half year is recorded at 14.05%, which is the lowest level observed in recent periods. The debt-to-equity ratio for the half year is at 0.36 times, marking the highest level in the company’s recent history, though still relatively moderate in absolute terms.

Valuation metrics indicate that Thermax . has a return on equity (ROE) of 11.8%, with a price-to-book value ratio of 7. This suggests a valuation that is on the higher side relative to its book value, though the stock is trading at a level comparable to its peers’ average historical valuations.

Profitability trends over the past year show a decline of 7.9% in profits, aligning with the negative return performance. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, indicating challenges in both the near and longer term.

Despite recent setbacks, Thermax . maintains certain strengths. The company’s average debt-to-equity ratio remains low at zero, indicating limited reliance on debt financing over the longer term. Operating profit has demonstrated a compound annual growth rate of 41.19%, reflecting healthy expansion in core business operations.

Institutional investors hold a significant stake in Thermax ., with 27.39% of shares owned by entities with substantial analytical resources. This level of institutional holding is notable within the sector and may influence market perceptions and liquidity.

On the broader market front, the Sensex continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend for the benchmark index. This contrasts with Thermax .’s current price trajectory, which remains below all major moving averages.

Thermax .’s recent adjustment in its Mojo Score to 30.0 and a change in Mojo Grade from Hold to Sell as of 4 August 2025 reflects a revision in its evaluation based on recent financial and market performance. The stock’s day change today was -1.32%, underperforming its sector by 0.72%.

In summary, Thermax . has experienced a notable decline to its 52-week low of Rs.2893.2, accompanied by underwhelming financial results and valuation metrics that suggest a cautious stance. The stock’s performance contrasts with broader market indices and sector trends, highlighting the challenges faced by the company in recent periods.

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