Thermax (TMX IN) – Visit Update – Industrial Infra rebound on cards – HOLD
Published on 12 Sep 2025
Execution challenges will remain a key monitorable in the short term. However, in the long term, TMX is well placed to gain from increasing thrust on energy transition & de-carbonization led by its 1) sustainable green industrial solutions in bioenergy, heating & cooling, chemicals and water, 2) technical expertise, and 3) prudent working capital management. The stock is currently trading at PE of 50.6x/44.7x on FY26/27E. We maintain our ‘Hold’ rating valuing the core business at a PE of 40x Mar’27E (same as earlier) arriving at a SoTP-derived TP of Rs3,633 (same as earlier).
