Thermax shares fell over 2% after Jefferies maintained a buy rating but revised its target price to ₹4,835 per share, down from previous estimates. Despite this adjustment, the stock still presents a significant upside from its current market price (CMP) of ₹3,384.65.
The brokerage cited a 29% shortfall in Q3 EBITDA, impacted by revenue deferments and weaker margins. Thermax’s management acknowledged these challenges but remains optimistic about Q4, projecting revenues exceeding ₹3,000 crore in the next quarter.
Jefferies noted that loss-making project completions and deferred revenue recognition weighed on Q3 results. However, the firm maintains a positive long-term outlook, highlighting a 27% EPS CAGR forecast for FY24-FY27. This growth trajectory, driven by strong execution and margin expansion, supports Thermax’s potential rebound.
Despite near-term headwinds, Jefferies retains a ‘Buy’ rating, emphasizing that Thermax remains well-positioned for future gains. With a robust order pipeline and improving financials, investors could see promising returns in the coming quarters.
Thermax shares opened at ₹3,351.00, reaching a high of ₹3,387.10 and a low of ₹3,291.45. The stock remains near its 52-week low of ₹3,233.60, significantly below its 52-week high of ₹5,839.95. As of 11:42 AM, the shares were trading 2.26% lower at Rs 3,311.50.
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