Thermax Ltd - Lingering concerns - Emkay

Reco: REDUCE
CMP: Rs 654
Target Price: Rs 532

- Revenues decline (-3% YoY, Rs10.1bn) - Energy -4%, Environment -3%. EBITDA margins down by 170bps YoY to 9.0%, APAT down 13% YoY to Rs666mn

- EBIT margins in Environment segment was down by 780bps to 2.3% led by losses in water & waste solutions and margin decline in the air pollution control

- Order inflows at Rs15bn up by 3.9% YoY. Order backlog at Rs64bn up 24% YoY

- Strong balance sheet but expensive valuations factors in the same. Reduce with target price of Rs532/share.

Source : Equity Bulls

Keywords