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Thermax Limited.
(THERMAX)
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Rating:54Neutral
Price Target:
₹3,431.00
▼(-24.05% Downside)
Action:Reiterated
Date:08/30/26
The score is held back primarily by weak cash-flow quality (negative free cash flow) and a sharp recent gross margin drop, which reduce confidence in earnings durability. Technicals also indicate a downtrend with negative momentum. These risks are compounded by a high P/E and low dividend yield, despite an otherwise decent balance sheet and steady revenue growth.
Positive Factors
Diversified engineered solutions and recurring services
Thermax combines equipment sales and turnkey projects with aftermarket services, spares, maintenance, and upgrades. This diversified model can support customer retention and create recurring revenue from the installed base, reducing reliance on any single product or project stream over the next several quarters.
Negative Factors
Negative free cash flow and weak cash conversion
Free cash flow turning negative while reported earnings remain positive indicates that profits are not consistently converting into cash available to the business. Higher working-capital needs and/or capital spending can constrain self-funded growth, reduce financial flexibility, and make earnings quality less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified engineered solutions and recurring services
Thermax combines equipment sales and turnkey projects with aftermarket services, spares, maintenance, and upgrades. This diversified model can support customer retention and create recurring revenue from the installed base, reducing reliance on any single product or project stream over the next several quarters.
Read all positive factors
Thermax Limited. (THERMAX) vs. iShares MSCI India ETF (INDA)
Market Cap
₹400.85B
Dividend Yield0.62%
Average Volume (3M)17.75K
Price to Earnings (P/E)61.3
Beta (1Y)0.57
Revenue Growth4.68%
EPS Growth-11.57%
CountryIN
Employees3,962
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)52.66
Shares Outstanding119,156,300
10 Day Avg. Volume26,163
30 Day Avg. Volume17,745
Financial Highlights & Ratios
PEG Ratio3.77
Price to Book (P/B)6.62
Price to Sales (P/S)3.44
P/FCF Ratio-84.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)64.67
Revenue Forecast (FY)₹122.26B
Thermax Limited. Business Overview & Revenue Model
Company Description
Thermax Limited provides energy, environmental, and chemical solutions in India and internationally. It operates in Industrial Products, Industrial Infra, Green Solutions, and Chemical segments. The Industrial Products segment offers manufacturing...
How the Company Makes Money
Thermax makes money primarily by selling engineered products, executing turnkey projects, and providing recurring services across its energy and environment offerings. Key revenue streams include: (1) Equipment and systems sales: revenue from manu...
Thermax Limited. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
43
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 109.08B | 106.94B | 102.56B | 92.37B | 80.34B | 60.64B |
| Gross Profit | 40.00B | 21.10B | 42.18B | 37.89B | 31.79B | 23.99B |
| EBITDA | 11.93B | 13.55B | 11.57B | 10.90B | 7.57B | 5.49B |
| Net Income | 5.93B | 7.21B | 6.34B | 6.45B | 4.50B | 3.12B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 132.82B | 120.38B | 101.53B | 88.39B | 74.61B |
| Cash, Cash Equivalents and Short-Term Investments | 24.67B | 24.67B | 27.22B | 23.38B | 25.24B | 17.19B |
| Total Debt | 0.00 | 23.53B | 17.18B | 12.96B | 8.31B | 3.79B |
| Total Liabilities | -55.79B | 77.03B | 70.95B | 57.13B | 49.68B | 39.69B |
| Stockholders Equity | 55.79B | 55.50B | 49.37B | 44.40B | 38.68B | 34.92B |
Cash Flow | ||||||
| Free Cash Flow | -3.33B | -4.37B | 1.40B | -5.97B | -1.90B | 2.41B |
| Operating Cash Flow | 633.40M | 5.16B | 10.43B | 2.47B | 4.60B | 3.25B |
| Investing Cash Flow | 1.69B | -6.87B | -12.41B | -5.09B | -6.80B | -4.22B |
| Financing Cash Flow | -1.62B | 3.73B | 1.24B | 2.85B | 3.49B | -205.80M |
Thermax Limited. Technical Analysis
Negative
4517.50
Price Trends
3820.02
Negative
4256.21
Negative
3766.60
Negative
Market Momentum
-164.05
Positive
26.43
Positive
14.92
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 4517.5 is above the 20-day moving average (MA) of 3485.07, above the 50-day MA of 3820.02, and above the 200-day MA of 3766.60, indicating a bearish trend. The MACD of -164.05 indicates Positive momentum. The RSI at 26.43 is Positive, neither overbought nor oversold. The STOCH value of 14.92 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹131.52B | 49.02 | ― | 1.80% | 8.28% | 1.08% | |
71 Outperform | ₹140.30B | 37.11 | ― | 0.40% | 5.04% | -10.39% | |
68 Neutral | ₹1.47T | 61.37 | ― | 0.44% | 27.00% | 739.32% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹400.85B | 61.30 | ― | 0.62% | 4.68% | -11.57% | |
50 Neutral | ₹303.28B | 60.94 | ― | 0.57% | 5.90% | -6.28% | |
50 Neutral | ₹348.75B | 78.21 | ― | 0.38% | 3.80% | -30.64% |
* General Sector Average
IN:THERMAX
Thermax Limited.
3,231.40
54.89
1.73%
IN:BHEL
Bharat Heavy Electricals Limited
427.60
183.49
75.17%
IN:BLUESTARCO
Blue Star Limited
1,497.00
-404.67
-21.28%
IN:INGERRAND
Ingersoll-Rand (India) Limited
4,156.25
127.94
3.18%
IN:KIRLOSBROS
Kirloskar Brothers Ltd.
1,743.05
-224.31
-11.40%
IN:VOLTAS
Voltas Limited
1,059.00
-307.11
-22.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.