The Thermax stock, which closed at Rs 254.20 on the BSE, has seen a quiet accumulation on hopes that it stands to gain from a decent order book and positive outlook of user industries such as steel, hydrocarbons and chemicals. It witnessed a trading volume of 30,275 shares against two-week average of, 28,000 shares.

Some analysts are known to have lately fine-tuned their consolidated earnings estimates for fiscal 2007 and fiscal 2008 at about Rs 13 per share and Rs 19 per share, respectively. Thermax is trading at a PE ratio of 13.3 fiscal 2008 estimated consolidated earnings.

The company's sustained margin expansions in key business segments are being perceived as a driver as well. Its compounded annual growth is expected to be sustained during the 2006-08 period.

Nilanjan Dey

(This article was published in the Business Line print edition dated July 12, 2006)
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