Thermax Ltd.
NSE: THERMAXThermax Ltd.: A 30-second snapshot
Thermax is an industrial energy and environment solutions company trading at ₹4,500, up 36.96% over the past year and 53.51% over the past three months; it carries a trailing PE of 70.35 that compresses to a forward PE of 46.68, reflecting Q4 2026 earnings where PAT rose 18% and the order book surged 112% on a ₹1,600-crore deal. Against those headline numbers, the balance sheet shows a debt-to-equity of 42.17 on a rising trend, ROE of 13.69%, and FCF positive in only 2 of available years, leaving the valuation heavily dependent on sustained order conversion at improving margins.
P/E
70.3
Forward P/E
46.7
ROE
+13.7%
Debt / Equity
42.17
Profit Margin
+6.6%
Div. Yield
+0.3%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
51/100
News
8 headlines · 4 positive · 0 negative
Thermax Limited Announces NCLT Hearing for Buildtech Products Merger on May 8, 2026 - scanx.trade
scanx.trade
Thermax Sees PAT Jump 18%, Order Book Surge 112% on ₹1.6k Cr Deal - Whalesbook
Whalesbook
Thermax reports 18% Q4 profit rise amid surge in order inflows - BusinessLine
BusinessLine
Thermax Q4 Results 2026 - Find Thermax Q4 Earnings Result | THERMAX Q4 results - Mint
Mint
Thermax appoints Kavita Singh as CHRO effective May 25 - People Matters Media
People Matters Media
Recent context
- ·Q4 2026 results: PAT up 18% year-on-year, order book surged 112% driven by a ₹1,600-crore deal win, as reported by BusinessLine and Whalesbook on 7 May 2026.
- ·An NCLT hearing for the proposed merger of Buildtech Products into Thermax was scheduled for 8 May 2026, representing an active inorganic restructuring step that could affect the consolidated balance sheet.
- ·Thermax appointed Kavita Singh as CHRO effective 25 May 2026, marking a senior leadership change in human resources as the company scales its order execution capacity.
Strengths
- +Revenue has grown at a 5-year CAGR of 12.9% and earnings at 18.7%, with Q4 2026 PAT rising 18% year-on-year, demonstrating that top-line growth is translating into earnings expansion.
- +Order book jumped 112% following a ₹1,600-crore deal win, providing forward revenue visibility that is reflected in a forward PE of 46.68 versus a trailing PE of 70.35 — a 34% compression if earnings guidance is met.
- +Price is above both the 50-DMA (₹3,697) and 200-DMA (₹3,275), and the 52-week drawdown is only 7.78%, indicating limited peak-to-trough damage relative to the magnitude of the rally.
- +A pending NCLT hearing for the Buildtech Products merger and the appointment of a new CHRO signal active corporate restructuring, which could improve operating leverage if integration is executed efficiently.
Weaknesses
- −ROE of 13.69% has not exceeded 15% in any year of available history and ranks 3rd of 4 peers with ROE data in the sector; this indicates below-median capital efficiency relative to the Infrastructure group.
- −Debt-to-equity of 42.17 is on a rising trend with FCF positive in only 2 of the available years; the consistency score of 45 and quality score of 31 rank the company 4th of 6 peers on the sector quality composite.
- −Profit margin of 6.57% is thin for a capital-intensive EPC-style business; the trailing PE of 70.35 embeds a high earnings-growth assumption, and any contract execution delay or margin disappointment could trigger significant multiple compression.
- −Mean analyst rating of 3.0 across 21 analysts (1–5 scale, lower = more constructive) sits at the neutral midpoint, which diverges from the strong recent price action and earnings beat — suggesting sell-side conviction is not uniformly behind the current valuation.
Open questions
- ?Does the 112% order-book surge represent a structural shift in Thermax's addressable market — industrial decarbonisation, waste heat recovery, chemical process — or does it reflect concentration in a small number of large contracts that may not recur?
- ?How has Thermax historically converted a rising order book into FCF, given that FCF has been positive in only 2 of available years; what working-capital dynamics drive the gap between reported earnings and cash generation?
- ?The debt-to-equity of 42.17 is rising: is this leverage funding productive capacity expansion that will improve ROCE, or is it bridging working-capital gaps inherent in the EPC billing cycle?
- ?The forward PE of 46.68 implies a significant earnings step-up from the trailing 70.35; what assumptions about margin recovery, order conversion rate, and project mix underpin that path, and how sensitive is the outcome to a 2–3 percentage-point margin miss?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| THERMAX | Thermax Ltd.You're viewing | 70.3 | +13.7% | 31 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹4,500.40
SMA 50
₹3,697.28
SMA 200
₹3,275.28
RSI (14)
65.3 (neutral)
From 52w high
-7.8%
1Y return
+37.0%
3M return
+53.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- mediumDebt-to-equity of 42.17 is high for an industrial/engineering company; the debt trend is flagged as rising with FCF positive in only 2 of available years, raising questions about balance-sheet durability if order execution slows.
- mediumROE of 13.69% has not cleared 15% in any year of available history; consistency score of 45 and quality score of 31 rank Thermax 4th of 6 peers on quality within the Infrastructure sector.
- mediumTrailing PE of 70.35 versus a forward PE of 46.68 implies the market prices in a sharp earnings acceleration; profit margin is 6.57% and 5-year earnings CAGR is 18.7%, so any order-cycle slowdown could compress the multiple materially.
- lowPrice has surged 53.5% over 3 months and RSI stands at 65.26; the stock is 21.7% above the 50-DMA (₹3,697) and 37.4% above the 200-DMA (₹3,275), with the nearest identifiable support at ₹3,922 — approximately 13% below current price.
Cross-section contradictions
- Strong price momentum — up 36.96% over 1 year and 53.51% over 3 months, trading well above both moving averages — coexists with a quality score of 31 (4th of 6 sector peers), ROE that has never exceeded 15% in the available history, and FCF positive in only 2 years; the market appears to be pricing a forward improvement in capital efficiency that the historical record has not yet demonstrated.
- News flow is uniformly positive-to-neutral (4 positive, 4 neutral, 0 negative) and the most recent quarter showed 18% PAT growth with a 112% surge in order inflows, yet the analyst mean rating of 3.0 across 21 analysts (1–5 scale, lower = more constructive) sits at the neutral midpoint of the scale — diverging from both the earnings print and the price action.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days