FUN-TECH Analysis of Thermax- CMP - 1522 Rs

 

FUN-TECH Analysis of Thermax- CMP - 1522 Rs 

 

Company Basic Information - Thermax Limited is engaged in the business of manufacture and sale of boilers, heating and cooling equipment, industrial chemicals, and water and waste management equipment. 

Sector – Capital Goods 

Industry – Industrial Equipment          

Market Cap - 18000 Crore

    Technical Views 

• 1.      Resistance at 1522, breaking out can give good momentum. 
• 2.      On a weekly time frame, A Flag Post pattern is visible.
• 3.      Mutual Fund Increasing their shareholding from last few quarters continuously.

Fundamental Views

• 1.        Continuously paying healthy dividend.
• 2.       Q-Q sales are increasing.
• 3.       Analyst forecast its EPS growth around 30% in FY 21-22.
• 4.       Over the last 3 Financial years, cash flow is increasing exponentially
• 5.       Over the last 5 years, debt to equity ratio has been 7.86%, vs industry avg of 38.82%.

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Action Plan

• 1.       Take a Positional trade with stop loss of 1450 on closing basis for Target of 1580-1600-1620. Retest will be there
• 2.       Take a Short term trade with stop loss of 1300 on closing basis for Target of 1950-2000-2050

Please note that position sizing is your own responsibility, the more you invest/trade the more your risk reward will be. So take care of this parameter very seriously.