Thermax Ltd. shares rose over 6% after Kotak Securities upgraded the stock to Buy from Sell, citing growth opportunities in the company's emerging businesses; however, it lowered the target price.
At around 10:24 a.m., the stock was trading at Rs 3,337 apiece on the NSE, gaining around 6.3% from its previous close at Rs 3,138.1.
Kotak Securities expects emerging businesses to accelerate Thermax's growth, with opportunities in data centre cooling, compressed biogas, and hydrogen.
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Data Centre Cooling, Hydrogen To Drive Growth
According to Kotak Securities, the US data centre opportunity is significantly larger than Thermax's existing cooling business. Rising demand for data centre infrastructure could create room for the company to expand its presence in this segment.
The brokerage also sees potential for the compressed biogas business to benefit from government incentives that could revive investments in the sector.
Also read: Thermax Bets On Over 10 Bio-CNG Plants A Year For 'Ethanol-Like' Growth Story
Kotak Securities expects Thermax's end-to-end offering in hydrogen to start contributing to its revenue from FY28.
The brokerage's upgrade reflects the potential of these emerging businesses to support growth over the coming years, even as it trimmed its target price to Rs 4,000 from Rs 4,250.
Share Price Performance Of Thermax Ltd.
The stock has been under pressure for a month. In 2026 so far, the stock has delivered around 7.6% returns, while the benchmark index Nifty Energy remained muted with 0.5% gains.
During the past 52 weeks, the stock traded within the range of Rs 2,742.7 and Rs 5,277.8 apiece, and it is currently trading at a price-to-earnings multiple of 63.3 times.
The market cap of the company stood at Rs 39,721.94 crore on the NSE.
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