UBS has initiated a ‘buy’ rating on Thermax with a target price of ₹4,100, citing its position as a diversified and sustainable energy solutions provider. The brokerage highlights Thermax’s profitable exposure to the expanding industrial energy efficiency market as a key growth driver.
UBS forecasts a 25% earnings CAGR between FY24 and FY27 and expects a 27% return on capital employed (RoCE) by FY27, driven by share and margin gains in core products. The company’s competitive profile and appetite for more orders are expected to support this growth trajectory. Additionally, margin improvements are likely to contribute significantly to earnings growth, with capital allocation being a key focus area for sustainable profitability.
On February 27, Thermax’s stock closed at ₹3,171.85, down by ₹28.80 or 0.90%. Despite the positive outlook and target price from UBS, the stock witnessed a decline, reflecting cautious investor sentiment.
Disclaimer: The views and investment tips expressed by investment experts on Business Upturn are their own and not those of the website or its management. Business Upturn advises users to check with certified experts before taking any investment decisions.
