Thermax Limited. (THERMAX) AI Stock Analysis

• Market Cap: ₹374.47B
• Dividend Yield: 0.45%
• Average Volume (3M): 4.51K
• Price to Earnings (P/E): 52.8
• Beta (1Y): 0.83
• Revenue Growth: 8.14%
• EPS Growth: -4.46%
• Country: IN
• Employees: 5,225
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 13.25
• Shares Outstanding: 119,156,300
• 10 Day Avg. Volume: 3,560
• 30 Day Avg. Volume: 4,507
• 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: ₹3,564.00
• Price Target Upside: 13.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹3,564.00 ▲(13.41% Upside)

Thermax Limited's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and stable profitability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation, which tempers the overall score.

Thermax Limited. Business Overview & Revenue Model

Company Description

Thermax Limited provides energy, environment, and chemical solutions in India and internationally. It operates through three segments: Energy, Environment, and Chemical. The company offers vapor absorption and hybrid chillers, heat pumps, chiller-heaters, and heat transformers; evaporative condensers, closed loop cooling towers, adiabatic and dry coolers, radiators, and air cooled heat exchangers and condensers; EPC solutions, such as cogen or trigen power plants, air cooled condensers, bio-CNG plants, waste heat recovery power plants, and refinery process units; and renewable energy solutions. It also provides oil and gas fired boilers, heat recovery boilers and systems, high pressure boilers, lean gas and solid fuel fired boilers, hot water generators, waste to energy boilers, fired heaters and process furnaces, waste heat recovery units, thermal oil heaters and vaporizers, hot water and air generators, energy plants, and packaged and modular units, as well as specialized services. In addition, the company offers air pollution control and water and waste solutions; and chemicals, such as ion exchange resins, water and fuel treatment chemicals, oil field chemicals, and construction chemicals. It serves agriculture, automobiles and auto components, aviation, biotechnology, cement, commercial/construction, engineering and capital goods, as well as food and beverages, fast moving consumer goods, healthcare, hospitality, infrastructure, IT and datacenter, manufacturing, medical devices, metals, oil and gas, paper and pulp, pharmaceuticals, power, renewable energy, rubber, telecommunications, textiles, and wood industries. The company was founded in 1966 and is headquartered in Pune, India. Thermax Limited is a subsidiary of RDA Holdings Private Limited.

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. Effective cost and cash management are evident, although improvements in operational efficiency and debt management are needed.

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	102.99B	103.89B	92.37B	80.34B	60.96B	47.37B
Gross Profit	46.54B	45.75B	37.89B	30.87B	8.24B	19.86B
EBITDA	12.25B	9.08B	10.80B	7.46B	5.37B	4.02B
Net Income	6.71B	6.34B	6.45B	4.50B	3.12B	2.07B
Balance Sheet
Total Assets	0.00	120.38B	101.53B	88.39B	74.61B	65.07B
Cash, Cash Equivalents and Short-Term Investments	27.20B	27.22B	23.38B	25.24B	17.19B	20.43B
Total Debt	0.00	17.18B	12.96B	8.31B	3.79B	3.39B
Total Liabilities	-49.43B	70.95B	57.13B	49.68B	39.69B	32.55B
Stockholders Equity	49.43B	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: 3142.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3142.65 is below the 20-day moving average (MA) of 3199.38, below the 50-day MA of 3255.22, and below the 200-day MA of 3440.58, indicating a bearish trend. The MACD of -43.63 indicates Positive momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 30.05 is Neutral, 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
CUMMINSIND	72 Outperform	₹1.10T	51.47	―	1.29%	20.71%	17.04%
ABB	67 Neutral	₹1.10T	61.37	―	0.83%	10.27%	11.90%
THERMAX	65 Neutral	₹374.47B	52.76	―	0.45%	8.14%	-4.46%
HONAUT	63 Neutral	₹321.15B	62.76	―	0.29%	7.98%	-4.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INOXWIND	60 Neutral	₹316.83B	43.46	―	―	83.50%	492.44%
BHEL	55 Neutral	₹810.28B	279.59	―	0.21%	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.