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THERMAX Share Price Target
Thermax Ltd.
Sector: Engineering
Sector: Engineering
THERMAX Share Price *
1,005.05 +0 (0%)
* (quote may be delayed)
THERMAX Share Price Forecast - Consensus
| No. of reports in last year | 10 |
| No. of analysts | 7 |
| Average Consensus Forecast | 1145.30 |
| Consensus Potential | 11.87% |
THERMAX Share Price Target - Broker Reports - 2019
Karvy Stock Broking
14-Aug-19
Price @ Call: 1060
Target: 1129
HOLD
We build in order inflow in line with management commentary and expect Thermax to deliver revenue CAGR of 11% and earnings CAGR of 16.1% during FY19-21E. Delay in FGD and refinery related orders could dent inflows which in turn couldimpact topline growth. Hence, we assume caution and maintain ‘HOLD’ rating onThermax for a target price of Rs. 1129, 29x FY21E earnings. Key upside risk to our call is lower than expected operating margins and order inflows.
Prabhudas Lilladher
12-Aug-19
Price @ Call: 1078.29
Target: 1147
ACCUMULATE
PAT miss on lower EBITDA margin and fall in other income
Thermax Ltd (TMX) reported robust revenue growth of 35% YoY, however PAT missed our expectations due to lower than expected EBIDTA margins and decrease in other income. Order inflow during 1QFY20 was a major disappointment with -27% YoY fall which was due to postponement of orders (due to elections) and weak investment sentiments in both domestic and international markets. Capacity utilization in most sectors is below optimal level, most companies are deferring capex plans. Going forward, management expects tendering to pick-up from 2Q/3Q FY20 onwards, mainly short cycle orders. Sectors which are expected to witness ordering are Cement, Steel, Water recycling, Chemical, Textile, Agro Pharma etc. The company received 1 FGD order in 1QFY20 and is L1 in couple of large orders which are expected to be received in FY20. On the international front, TMX sounded cautious due to weak investment sentiments and financial crunch. We expect TMX to report sales/PAT CAGR of 7%/15% over next two years (FY19-21E). The stock is currently trading at 32.6x/28.3x FY20E/21E. We maintain our Accumulate rating on the stock with TP of Rs1147 (30x FY21E).
Thermax Ltd (TMX) reported robust revenue growth of 35% YoY, however PAT missed our expectations due to lower than expected EBIDTA margins and decrease in other income. Order inflow during 1QFY20 was a major disappointment with -27% YoY fall which was due to postponement of orders (due to elections) and weak investment sentiments in both domestic and international markets. Capacity utilization in most sectors is below optimal level, most companies are deferring capex plans. Going forward, management expects tendering to pick-up from 2Q/3Q FY20 onwards, mainly short cycle orders. Sectors which are expected to witness ordering are Cement, Steel, Water recycling, Chemical, Textile, Agro Pharma etc. The company received 1 FGD order in 1QFY20 and is L1 in couple of large orders which are expected to be received in FY20. On the international front, TMX sounded cautious due to weak investment sentiments and financial crunch. We expect TMX to report sales/PAT CAGR of 7%/15% over next two years (FY19-21E). The stock is currently trading at 32.6x/28.3x FY20E/21E. We maintain our Accumulate rating on the stock with TP of Rs1147 (30x FY21E).
Sharekhan
9-Aug-19
Price @ Call: 1078.29
Target: 1195
HOLD
Maintain Hold with revised PT of Rs. 1195:
We have finetuned our earnings estimates for FY2020-FY2021 factoring increased interest, depreciation and lower treasury income. We have built in muted revenue growth for FY2020 considering weak order backlog and lower order intake visibility. The revenues and net earnings to deliver a weak CAGR of 7% and 11% over FY2019- FY2021E. While the stock is trading at a steep valuation of 30x FY2021 net earnings which leaves limited scope for upside. Hence we maintain Hold rating on the stock with a revised PT of Rs. 1,195.
We have finetuned our earnings estimates for FY2020-FY2021 factoring increased interest, depreciation and lower treasury income. We have built in muted revenue growth for FY2020 considering weak order backlog and lower order intake visibility. The revenues and net earnings to deliver a weak CAGR of 7% and 11% over FY2019- FY2021E. While the stock is trading at a steep valuation of 30x FY2021 net earnings which leaves limited scope for upside. Hence we maintain Hold rating on the stock with a revised PT of Rs. 1,195.
Karvy Stock Broking
27-May-19
Price @ Call: 1045.75
Target: 1102
HOLD
We build in order inflows in line with management commentary and expect Thermaxto deliver revenue CAGR of 12% and earning CAGR of 16.7% during FY19-21E.Delay in FGD and refinery related orders could dent inflows which in turn couldimpact topline growth. Hence, we assume caution and maintain ‘HOLD’ rating on Thermax for a target price of Rs. 1102, 28x FY21E earnings. Key upside risk to ourcall is better than expected operating margins and downside risk is order inflows.
Prabhudas Lilladher
24-May-19
Price @ Call: 989
Target: 1147
ACCUMULATE
The company is positive on FGD and is L1 in couple of large orders which are expected to be received in FY20. On the international front, TMX sounded positive due to expected increase in demand in USA, Indonesia and Middle East. The execution of low margin order by Danstoker may continue in Q1FY20, however impact would be negligible in FY20. We expect TMX to report sales/PAT CAGR of 7%/15% over next two years (FY19-21E). The stock is currently trading at 29.7x/25.9x FY20E/21E. We maintain our Accumulate rating on the stock with revised TP of Rs1147 (30x FY21E).
ICICIdirect.com
24-May-19
Price @ Call: 989
Target: 1170
BUY
With expected uptick in domestic order inflows and recovery in international order inflows through geographic diversification, order backlog is expected to improve further. Thermax may continue growth momentum on revenue front with expected CAGR of 10.3% in FY19-21E. Consequently, with expected margin recovery in medium term and normalization of tax rate, PAT is expected to grow at a CAGR of 21.6% over FY19-21E. We continue to maintain our BUY rating with a revised target price of Rs 1170/share.
Nirmal Bang
24-May-19
Price @ Call: 1002.75
Target: 1040
ACCUMULATE
Consolidated order inflow in 4QFY19 was down 28% YoY at Rs11.6bn while order backlog fell 6% YoY and 17% QoQ to Rs53.7bn. For FY20, Thermax expects a marginal rise in order inflow led by FGDs (Rs10bn inflow), scale up in South East Asia and standard product orders from domestic market. On a high base of FY19, Thermax expects single-digit growth in FY20 with an aim to improve margin. We have cut our earnings estimates by 2%/6% for FY20/FY21, respectively, and retained Accumulate rating on Thermax with a revised target price of Rs1,040 (from Rs1,070 earlier) based on 27x FY21E earnings.
Geojit Financial Services
23-Feb-19
Price @ Call: 962.31
Target: 1018
HOLD
Motilal Oswal
12-Feb-19
Price @ Call: 1058.05
Target: 1240
BUY
ICICIdirect.com
12-Feb-19
Price @ Call: 1058.05
Target: 1265
BUY
THERMAX Share Price Target - Broker Reports - 2018
Prabhudas Lilladher
10-Aug-18
Price @ Call: 1127.47
Target: 1138
HOLD
ICICIdirect.com
10-Aug-18
Price @ Call: 1127.47
Target: 1317
BUY
Sharekhan
10-Aug-18
Price @ Call: 1108.05
Target: 1240
HOLD
Motilal Oswal
10-Aug-18
Price @ Call: 1108.05
Target: 1295
BUY
Geojit Financial Services
28-May-18
Price @ Call: 1115.4
Target: 1212
HOLD
Sharekhan
23-May-18
Price @ Call: 1147.79
Target: 1240
BUY
Prabhudas Lilladher
22-May-18
Price @ Call: 1142
Target: 1247
ACCUMULATE
Edelweiss
22-May-18
Price @ Call: 1142
Target: 780
REDUCE
Motilal Oswal
21-May-18
Price @ Call: 1153.94
Target: 1370
BUY
Geojit Financial Services
16-Feb-18
Price @ Call: 1167
Target: 1113
SELL
Edelweiss
8-Feb-18
Price @ Call: 1165
Target: 780
REDUCE
Motilal Oswal
8-Feb-18
Price @ Call: 1165
Target: 1250
NEUTRAL
Prabhudas Lilladher
7-Feb-18
Price @ Call: 1157.15
Target: 1309
BUY
THERMAX Share Price Target - Broker Reports - 2017
Axis Direct
16-Nov-17
Price @ Call: 1035.48
Target: 1140
BUY
Geojit Financial Services
13-Nov-17
Price @ Call: 995
Target: 1104
ACCUMULATE
Prabhudas Lilladher
21-Sep-17
Price @ Call: 917.95
Target: 1018
ACCUMULATE
Indiabulls Ventures
14-Sep-17
Price @ Call: 948.91
Target: 1345
BUY
IIFL
7-Sep-17
Price @ Call: 880.1
Target: 1054
ADD
Edelweiss
10-Aug-17
Price @ Call: 874.1
Target: 600
REDUCE
ICICIdirect.com
10-Aug-17
Price @ Call: 874.1
Target: 1000
BUY
Motilal Oswal
5-Jun-17
Price @ Call: 977.65
Target: 850
SELL
Axis Direct
15-Feb-17
Price @ Call: 860
Target: 1010
BUY
Edelweiss
9-Feb-17
Price @ Call: 860
Target: 630
REDUCE
Religare
9-Feb-17
Price @ Call: 876.35
Target: 750
SELL
Motilal Oswal
9-Feb-17
Price @ Call: 860
Target: 781
SELL
HDFC Securities
9-Feb-17
Price @ Call: 858
Target: 770
SELL
THERMAX Share Price Target - Broker Reports - 2016
Geojit Financial Services
16-Nov-16
Price @ Call: 865
Target: 794
SELL
Axis Direct
15-Nov-16
Price @ Call: 881
Target: 1010
BUY
Prabhudas Lilladher
11-Nov-16
Price @ Call: 881
Target: 900
ACCUMULATE
Religare
12-Aug-16
Price @ Call: 865
Target: 650
SELL
Dolat Capital
1-Jun-16
Price @ Call: 752
Target: 680
SELL
ICICIdirect.com
27-May-16
Price @ Call: 750
Target: 781
HOLD
Edelweiss
26-May-16
Price @ Call: 743
Target: 650
SELL