ScoreWhy is Thermax Ltd. ?
1
The company is Net-Debt Free
2
Healthy long term growth as Operating profit has grown by an annual rate 27.75%
3
Flat results in Mar 26
- ROCE(HY) Lowest at 13.74%
- DEBT-EQUITY RATIO(HY) Highest at 0.42 times
- INTEREST(Q) Highest at Rs 42.35 cr
4
With ROE of 12.2, it has a Very Expensive valuation with a 9.5 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 23.82%, its profits have risen by 6.7% ; the PEG ratio of the company is 11.7
5
High Institutional Holdings at 26.73%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating performance in long term as well as near term
- Along with generating 23.82% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
7
With its market cap of Rs 53,978 cr, it is the biggest company in the sector and constitutes 20.95% of the entire sector
- Its annual Sales of Rs 10,694.15 are 13.06% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Thermax should be less than 10%
- Overall Portfolio exposure to Heavy Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Heavy Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Thermax for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Thermax
23.84%
0.74
32.40%
Sensex
-6.84%
-0.53
12.96%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.42%
EBIT Growth (5y)
27.75%
EBIT to Interest (avg)
8.95
Debt to EBITDA (avg)
1.50
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
1.60
Tax Ratio
28.54%
Dividend Payout Ratio
24.86%
Pledged Shares
0
Institutional Holding
26.73%
ROCE (avg)
18.72%
ROE (avg)
11.75%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
78
Industry P/E
36
Price to Book Value
9.54
EV to EBIT
64.56
EV to EBITDA
51.50
EV to Capital Employed
9.72
EV to Sales
4.94
PEG Ratio
11.68
Dividend Yield
0.32%
ROCE (Latest)
15.06%
ROE (Latest)
12.20%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
NET SALES(Q)
Highest at Rs 3,428.04 cr
PBDIT(Q)
Highest at Rs 374.31 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 10.92%
PBT LESS OI(Q)
Highest at Rs 277.96 cr.
PAT(Q)
Highest at Rs 242.48 cr.
EPS(Q)
Highest at Rs 21.68
-10What is not working for the Company
ROCE(HY)
Lowest at 13.74%
DEBT-EQUITY RATIO(HY)
Highest at 0.42 times
INTEREST(Q)
Highest at Rs 42.35 cr
Loading Valuation Snapshot...
Here's what is working for Thermax
Net Sales - Quarterly
Highest at Rs 3,428.04 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 374.31 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 10.92%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 277.96 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 277.96 cr has Grown at 24.21%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 242.48 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 21.68
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Thermax
Debt-Equity Ratio - Half Yearly
Highest at 0.42 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest - Quarterly
Highest at Rs 42.35 cr
in the last five quarters and Increased by 23.69 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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