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Target: ₹2,935
CMP: ₹2,400.95
Thermax Limited provides equipment and services solutions in the areas of energy and environment which comprises heating, cooling, power, water & waste management, air pollution control, and chemicals. The company’s focus on energy and environment-friendly solutions and products led to growth which is supported by changing emission norms and growing demand for green-energy solutions.
The future of Thermax is closely aligned with the needs of a cleaner, greener, and healthier world. The company is committed to its philosophy of ‘Conserving Resources, Preserving the Future’ with more sustainable projects in clean air, clean energy, and clean water.
We believe Thermax is well-placed to capitalize on these opportunities. Going ahead, we expect the company’s revenue to grow at a CAGR of about 9.3 per cent over FY23-FY26. We recommend Thermax with a target price of ₹2,935 based on FY26 EPS of ₹58.7 with a forward PE valuation multiple of 50.
It looks like a value buy with growth potential for medium to long-term investment. We recommend Accumulate rating for the long term.
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