Jefferies has reiterated its “buy” rating on Thermax, projecting a 21.8% upside from the current market price of ₹5,009, with a target of ₹6,100. The brokerage remains optimistic despite Q2 EBITDA coming in 6% below expectations due to a similar revenue miss.
The strong recovery in margins for the industrial infrastructure segment, which constitutes 45% of revenues, was a key positive. Margins improved to 7.5% in Q2 from -2% in the previous quarter. Jefferies continues to expect a robust 28% EPS CAGR for FY24-27, driven by revenue growth and margin improvements.
The firm also noted Thermax’s growing focus on green hydrogen as a promising medium-term opportunity, adding to its positive outlook.
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