Jefferies maintained its Buy rating on Thermax, citing increased order flow and a promising outlook. The price target has been revised to Rs 6,100, suggesting 22% upside potential.
Despite the slight Ebitda underachievement in the second quarter of this fiscal year, the brokerage remains positive on Thermax’s trajectory with a recovery in industrial infrastructure and a resilient order book. Jefferies believes the stock will trade at a premium valuation, supported by expected compound annual growth in earnings per share of 28% from fiscal 2024 to 2027.
Thermax reported a 70% year-over-year increase in order flow, supported by strong performance across industrial products and infrastructure, which together accounted for 87% of the company’s revenue.
The company is also eyeing significant opportunities in refinery pipelines and mid-sized projects. The main contribution will come from a large mining project in Botswana and a refinery pipeline scheduled to be converted by the first half of 2026.
