Thermax Limited. (THERMAX) AI Stock Analysis

• Market Cap: ₹392.71B
• Dividend Yield: 0.43%
• Average Volume (3M): 14.32K
• Price to Earnings (P/E): 55.3
• Beta (1Y): 0.70
• Revenue Growth: 8.14%
• EPS Growth: -4.46%
• Country: IN
• Employees: 5,225
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 13.25
• Shares Outstanding: 119,156,300
• 10 Day Avg. Volume: 6,262
• 30 Day Avg. Volume: 14,318
• PEG Ratio: -37.24
• Price to Book (P/B): 8.10
• Price to Sales (P/S): 3.85
• P/FCF Ratio: 285.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,948.00
• Price Target Upside: 19.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ₹3,948.00 ▲(19.92% Upside)

Thermax Limited's overall stock score is primarily driven by its strong financial performance, indicating a healthy growth trajectory and effective management. The technical analysis suggests moderate momentum, while the current valuation highlights potential concerns about overvaluation. The lack of recent earnings call data and notable corporate events means these areas did not impact the scoring.

Thermax Limited. Business Overview & Revenue Model

Company Description

Thermax Limited is an Indian multinational engineering and technology company that provides sustainable solutions in energy and environment. The company operates across various sectors, including energy, environment, and chemical, offering a wide range of products and services such as boilers, heaters, cooling systems, and air pollution control systems. Thermax caters to a diverse clientele across industries like power, oil and gas, chemicals, food and beverages, and more.

How the Company Makes Money

Thermax Limited makes money through a combination of product sales, project execution, and service contracts. Its key revenue streams include the sale of energy-efficient equipment like boilers and heaters, environmental systems like air and water pollution control systems, and chemicals for water and waste treatment. The company also generates revenue by executing turnkey projects for power plants and industrial utilities, providing end-to-end solutions from design to commissioning. Additionally, Thermax offers maintenance and operational services for its installations, ensuring a steady flow of income through long-term service agreements. Strategic partnerships and collaborations with global technology leaders enhance its offerings and market reach, contributing significantly to its earnings.

Thermax Limited. Financial Statement Overview

Summary

Thermax Limited exhibits strong financial health with robust revenue growth, stable profitability, and a solid asset base. There are effective cost and cash management strategies in place, though operational efficiency and debt management could be improved.

Income Statement

Thermax Limited has demonstrated a strong growth trajectory with an impressive revenue growth rate over the last few years. The company has maintained healthy gross profit margins, showcasing effective cost management. Additionally, the net profit margin has been stable, indicating consistent profitability. However, the EBITDA margin has shown slight fluctuations, which could be an area of focus for improving operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a reasonable debt-to-equity ratio, indicating moderate leverage. The company has a good equity ratio, showing a strong asset base funded by equity. Return on Equity (ROE) is healthy, indicating efficient use of shareholder funds. However, the increase in total liabilities over the years suggests a need for careful debt management.

Cash Flow

Thermax Limited has shown a remarkable turnaround in free cash flow, moving from negative to positive in recent periods, which is a positive indicator of cash generation. The operating cash flow to net income ratio suggests efficient cash conversion from profits. However, the free cash flow growth rate has been volatile, suggesting potential fluctuations in capital expenditures and cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	103.89B	103.89B	92.37B	80.34B	60.64B	47.10B
Gross Profit	42.48B	45.75B	36.86B	30.87B	7.92B	19.86B
EBITDA	10.77B	9.08B	10.80B	7.46B	5.37B	4.02B
Net Income	6.35B	6.34B	6.45B	4.50B	3.12B	2.07B
Balance Sheet
Total Assets	120.38B	120.38B	101.53B	88.39B	74.61B	65.07B
Cash, Cash Equivalents and Short-Term Investments	27.22B	27.22B	23.38B	25.51B	17.38B	20.43B
Total Debt	17.18B	17.18B	12.96B	8.31B	3.79B	3.39B
Total Liabilities	70.95B	70.95B	57.13B	49.68B	39.69B	32.55B
Stockholders Equity	49.37B	49.37B	44.40B	38.68B	34.92B	32.51B
Cash Flow
Free Cash Flow	0.00	1.40B	-5.97B	-1.90B	2.41B	6.86B
Operating Cash Flow	0.00	10.43B	2.47B	4.60B	3.25B	7.69B
Investing Cash Flow	0.00	-12.41B	-5.09B	-6.80B	-4.22B	-6.36B
Financing Cash Flow	0.00	1.24B	2.85B	3.49B	-205.80M	772.40M

Thermax Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3292.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:THERMAX, the sentiment is Negative. The current price of 3292.25 is below the 20-day moving average (MA) of 3657.37, below the 50-day MA of 3546.02, and below the 200-day MA of 3779.79, indicating a bearish trend. The MACD of -78.07 indicates Positive momentum. The RSI at 35.11 is Neutral, neither overbought nor oversold. The STOCH value of 9.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:THERMAX.

Thermax Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THERMAX	73 Outperform	₹392.71B	55.33		0.43%	8.14%	-4.46%
CUMMINSIND	72 Outperform	₹1.04T	48.62		1.36%	20.71%	17.04%
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
HONAUT	63 Neutral	₹314.27B	61.42		0.30%	7.98%	-4.27%
ABB	61 Neutral	₹1.07T	59.87		0.85%	10.27%	11.90%
INOXWIND	60 Neutral	₹309.31B	44.36		―	103.20%	―
BHEL	57 Neutral	₹775.63B	267.63		0.22%	16.28%	―

Thermax Limited. Corporate Events

Thermax Limited Announces 44th AGM and E-Voting Details

Thermax Limited has announced the publication of a newspaper advertisement regarding its 44th Annual General Meeting and e-voting information. This announcement is part of the company’s compliance with SEBI regulations, ensuring transparency and communication with its stakeholders. The publication in Financial Express and Loksatta highlights the company’s commitment to maintaining robust governance practices.