Jefferies has maintained a buy rating on Thermax, but lowered the target price to ₹4,835 per share, down from previous estimates. Despite the revision, the stock still offers a significant upside from its current market price (CMP) of ₹3,384.65.
The brokerage pointed out that Q3 EBITDA was a big miss, falling short by 29% due to both revenue deferments and weaker-than-expected margins. Management acknowledged these challenges but expects a strong Q4, guiding for revenues exceeding ₹3,000 crore in the next quarter.
Jefferies highlighted that the impact of revenue deferment and the completion of loss-making projects weighed on Q3 performance. However, looking ahead, Thermax’s revenue and margin-linked 27% EPS CAGR for FY24-FY27 should support long-term growth.
Despite the near-term earnings miss, Jefferies believes Thermax is well-positioned for a rebound, with strong execution and margin expansion potential driving future upside.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors are advised to do their own due diligence before making any investment decisions.)
