Thermax Q1 Results Review - Green Energy, Chemicals To Drive Growth: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Thermax Ltd. reported a largely in-line set of numbers with a healthy 17% YoY revenue growth at Rs 19.3 billion led by growth across segments such as industrial products (up 26% YoY), industrial Infra (up 13% YoY), green solutions (up 94% YoY) and chemicals (up 7% YoY). Order inflows came in at Rs 25.7 billion (up 11% YoY) while the order book as of Q1 FY24 stands at Rs 105 billion (1.3 times trailing twelve months revenues), providing revenue visibility for one-two years. Ebitda margins expanded by ~100 bps YoY owing to easing raw material pressures. Though the ordering pipeline for large projects has plateaued, management sees decent traction in green energy, water treatment, ZLD, waste to energy, biomass, waste heat recovery, clean air solutions, etc. both in India and globally. We believe Thermax is well placed to capitalise on revival of economic activities in the long run given its-strong balance sheet,prudent working capital management, andrecent technological tie-ups. The stock is currently trading at 49.8 times/39.5 times FY24E/25E. With the recent run-up in the stock price, we downgrade it to 'Neutral' ('Add' previously) with a revised target price of Rs 2,633 valuing the company at 40 times FY25E EPS..Click on the attachment to read the full report:.Apar Industries Q1 Results Review - Future Performance Largely Factored In: Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Thermax Q1 Results Review - Green Energy, Chemicals To Drive Growth: Yes Securities

We believe Thermax is well placed to capitalise on revival of economic activities in the long run.

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