Thermax - Reimagining Energy Transition: ICICI Securities

ICICI Securities Report

We visited Thermax Ltd.’s manufacturing facility in Pune and interacted with senior management. We saw a bouquet of new offerings – products and services that help reduce the carbon foot print for its industrial users.

Some, among the new offerings, have been introduced in the last couple of years; more are likely to be offered in the market in near future.

Thermax’s offerings include:

1. bio CNG;

2. flexi fuel boilers;

3. onsite energy solutions;

4. renewable assets;

5. bio CNG;

6. hydrogen; and

7. coal gasification.

We believe that that there is limited competition in each of the new segments. Almost all the new products are quite promising; however, revenue potential is difficult to ascertain at this stage.

We have an 'Add' rating on Thermax with a target price of Rs 3,045. The stock is trading at 39 times FY26E earnings per share of Rs 70/share.

Key risks

• Delays in execution

• Low new order inflows

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.