Thermax Ltd logo

Thermax Ltd

THERMAX NSE

Thermax Limited offers solutions to energy, environment and chemical sectors. The Company’s portfolio includes boilers and heaters, absorption chillers/ heat pumps, power plants, solar equipment, air pollution control equipment/system, water and waste recycle plant, ion exchange resins and performance chemicals and related services. [1]

AI Verdict: HOLD Confidence: 5%

Thermax trades at a steep PE of 80.4x and 10.4x book value, which is difficult to justify given a 3-year ROE of only 14% and TTM sales growth of just 3%. While the company has delivered strong stock CAGR of 30% over 3 years and solid long-term profit compounding, current valuations leave little margin of safety.

Key Fundamentals

MidcapElectrical EquipmentCapital Goods
Market Cap
₹56,728 Cr
Volatility
Moderate
P/E Ratio
79.85
EBITDA
₹1,026 Cr
Return on Equity
14.49%
Debt to Equity
0.32
Book Value
₹465.88
EPS
₹50.82
52W High
₹5,075
52W Low
₹2,742.7

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 25.7%

Weaknesses

3
  • Stock is trading at 10.2 times its book value
  • Company has a low return on equity of 13.5% over last 3 years.
  • Earnings include an other income of Rs.329 Cr.

Growth Rate

Revenue Growth
0.50% ↘
Net Income Growth
18.06% ↘
Cash Flow Change
321.67% ↗
ROE
-12.49% ↘
ROCE
-11.24% ↘
EBITDA Margin (Avg.)
-14.59% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
HOLD
Risk high

Thermax trades at a steep PE of 80.4x and 10.4x book value, which is difficult to justify given a 3-year ROE of only 14% and TTM sales growth of just 3%. While the company has delivered strong stock CAGR of 30% over 3 years and solid long-term profit compounding, current valuations leave little margin of safety.

Bull Case 7
  • Strong stock price CAGR of 30% over 3 years and 28% over 5 years, demonstrating sustained wealth creation
  • Compounded profit growth of 23% over 5 years indicates improving operational leverage and execution
  • Compounded sales growth of 17% over 5 years reflects healthy order book conversion in the capital goods cycle
  • 3-year ROE improved to 14% from 10-year average of 11%, showing improving capital efficiency
  • Healthy dividend payout ratio of 25.7% signals management confidence in cash flow sustainability
  • Market cap of Rs.57,445 Cr provides institutional-grade liquidity and index inclusion potential
  • 10-year compounded profit growth of 9% is now accelerating to 14% over 3 years, indicating a structural earnings inflection
Bear Case 8
  • PE ratio of 80.4x is extremely expensive for a capital goods company with only 3% TTM sales growth
  • Stock trades at 10.4x book value, pricing in years of future growth with minimal downside protection
  • TTM sales growth has decelerated sharply to just 3% from 10% 3-year CAGR, signaling potential order slowdown
  • ROE of 13.5% over 3 years is modest for a stock commanding a 10.4x price-to-book multiple
  • Earnings quality concern: other income of Rs.329 Cr inflates reported profits, masking core operating performance
  • Only 25% of analysts recommend a Buy while 30% recommend Sell, reflecting poor Street consensus
  • Dividend yield of just 0.41% offers negligible income support at current elevated valuations
  • TTM profit growth of only 6% versus 80.4x PE implies a PEG ratio well above 10x, suggesting extreme overvaluation

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Neutral 1
  • NCLT approves Buildtech merger Jun 3

    Thermax received NCLT approval on June 2, 2026 to absorb wholly-owned subsidiary Buildtech Products India, effective April 1, 2025. No share issuance required; filing with Registrar of Companies must occur within 30 days.

TL;DR: Limited news flow for Thermax this period. The NCLT-approved merger of Buildtech Products India is a routine corporate housekeeping action that consolidates the construction chemicals business under the parent entity with no dilution. No material headwinds or catalysts are visible from current coverage, so the near-term outlook depends on broader capital goods sector momentum and upcoming order inflow updates.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,311
1,933
2,302
2,324
2,764
2,184
2,616
2,529
3,046
2,158
2,474
2,635
3,428
Expenses
2,111
1,801
2,098
2,137
2,491
2,044
2,338
2,340
2,747
1,933
2,302
2,380
3,054
Operating Profit
200
132
204
187
273
141
278
188
300
225
172
255
374
OPM %
9%
7%
9%
8%
10%
6%
11%
7%
10%
10%
7%
10%
11%
Other Income
58
2
66
185
55
84
60
32
78
66
85
121
56
Interest
14
13
20
27
28
27
29
29
31
30
32
34
42
Depreciation
29
29
33
36
50
36
42
35
45
49
51
53
54
PBT
214
91
217
309
251
161
266
156
301
211
174
289
334
Tax %
27%
34%
27%
23%
25%
32%
26%
27%
32%
28%
31%
29%
27%
Net Profit
156
60
159
237
188
109
198
114
206
151
119
205
244
EPS in Rs
13.09
4.94
13.24
20
15.97
9.72
16.54
9.73
17.27
12.79
10.04
17.14
20.5
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
5,304
5,145
4,483
4,465
5,973
5,731
4,791
6,128
8,090
9,323
10,389
10,694
Expenses
4,842
4,712
4,049
4,088
5,516
5,331
4,435
5,715
7,489
8,526
9,479
9,668
Operating Profit
462
433
434
377
457
401
356
414
601
797
910
1,026
OPM %
9%
8%
10%
8%
8%
7%
7%
7%
7%
9%
9%
10%
Other Income
73
118
95
115
60
105
54
135
156
307
250
329
Interest
82
12
10
13
14
15
21
25
38
88
117
139
Depreciation
134
72
82
82
92
117
115
113
117
148
159
208
PBT
319
467
438
397
410
375
275
410
603
869
884
1,008
Tax %
54%
31%
36%
42%
21%
43%
25%
24%
25%
26%
29%
29%
Net Profit
148
282
216
231
325
212
207
312
451
643
627
720
EPS in Rs
17.6
23.69
18.72
19.48
27.31
17.83
17.34
26.21
37.79
54.15
53.25
60.47
Div. Payout %
40%
24%
30%
29%
24%
37%
38%
32%
25%
21%
25%
31%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
24
23
23
23
23
23
23
23
23
23
23
23
Reserves
2,123
2,394
2,515
2,692
2,992
3,005
3,229
3,470
3,846
4,417
4,914
5,527
Borrowings
688
195
136
234
240
230
328
368
831
1,277
1,718
2,353
Other Liabilities
3,255
2,554
2,371
2,980
3,535
2,693
2,921
3,598
4,137
4,424
5,353
5,380
Total Liabilities
6,089
5,166
5,044
5,929
6,790
5,951
6,500
7,458
8,836
10,141
12,008
13,282
Fixed Assets
1,431
827
811
973
1,312
1,283
1,242
1,195
1,248
1,906
2,806
3,098
CWIP
43
60
141
103
40
56
24
44
434
525
563
1,392
Investments
822
1,050
1,083
1,472
829
875
234
1,477
1,626
1,765
1,699
1,784
Other Assets
3,793
3,228
3,009
3,381
4,609
3,737
4,999
4,742
5,528
5,945
6,941
7,009
Total Assets
6,089
5,166
5,044
5,929
6,790
5,951
6,500
7,458
8,836
10,141
12,008
13,282
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
311
253
335
534
-115
326
769
325
460
247
1,043
542
Investing
80
-127
-99
-507
266
-140
-627
-420
-664
-514
-1,220
-587
Financing
-351
-112
-126
-20
-65
-232
77
-21
349
285
124
248
Net Cash Flow
39
13
110
7
85
-47
220
-115
144
19
-54
202
Free Cash Flow
282
120
216
333
-270
278
686
241
-190
-471
143
-401
CFO/OP
98
98
114
188
16
114
243
103
102
54
135
87
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
122
95
84
102
84
88
94
85
80
83
85
75
Inventory Days
55
39
46
57
56
54
58
76
60
53
45
60
Days Payable
135
126
162
161
150
114
164
153
118
107
107
135
Cash Conversion Cycle
42
7
-32
-3
-10
28
-11
8
21
29
24
0
Working Capital Days
-20
-12
-7
-40
-4
-7
-50
-44
-39
-24
-37
3
ROCE %
14%
18%
18%
15%
17%
12%
10%
12%
15%
17%
16%
15%

Shareholding Pattern

As of Mar 2026
Promoters 61.98%
DIIs 15.49%
FIIs 11.24%
Others 6.39%
Public 4.90%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
61.98%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
12.24%
15.15%
15.38%
15.49%
15.86%
16.02%
13.44%
12.36%
11.24%
DIIs
12.80%
12.77%
12.00%
12.72%
13.17%
13.21%
15.27%
15.34%
15.63%
15.46%
15.46%
15.71%
15.82%
12.88%
12.72%
12.66%
12.25%
11.75%
13.95%
14.84%
15.49%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
4.61%
4.52%
4.38%
4.37%
4.22%
4.08%
4.01%
4.09%
3.84%
3.91%
3.74%
3.83%
3.71%
3.78%
3.73%
3.67%
3.71%
4.00%
4.26%
4.52%
4.90%
Others
20.61%
20.73%
21.65%
20.93%
20.63%
20.72%
18.73%
18.59%
18.54%
18.64%
18.82%
18.48%
6.25%
6.21%
6.19%
6.20%
6.19%
6.26%
6.37%
6.30%
6.39%
No. of Shareholders
31,546
32,515
32,015
34,088
34,440
36,255
37,910
39,943
36,103
39,815
35,616
39,547
40,819
48,966
51,876
50,755
53,687
62,986
71,208
77,455
89,964

Documents

Frequently Asked Questions about Thermax Ltd

What does Thermax Ltd do?
Thermax Limited offers solutions to energy, environment and chemical sectors. The Company’s portfolio includes boilers and heaters, absorption chillers/ heat pumps, power plants, solar equipment, air pollution control equipment/system, water and waste recycle plant, ion exchange resins and perfor...
Where is Thermax Ltd (THERMAX) listed?
Thermax Ltd is listed on the Indian stock exchanges. It is listed on NSE: THERMAX and BSE: 500411. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Thermax Ltd belong to?
Thermax Ltd operates in the Industrials sector within the Electrical Equipment industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Thermax Ltd?
Thermax Ltd has a market capitalisation of approximately ₹56727.93 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Thermax Ltd?
The Price-to-Earnings (PE) ratio of Thermax Ltd is 79.85. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Thermax Ltd?
Over the past 52 weeks, Thermax Ltd has traded between a low of ₹2,742.7 and a high of ₹5,075. This range helps investors understand the stock's price volatility and recent trading levels.
Does Thermax Ltd pay dividends?
Yes, Thermax Ltd has a dividend yield of 0.42%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Thermax Ltd?
Thermax Ltd has a Return on Equity (ROE) of 14.49%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Thermax Ltd on Tapetide?
On Tapetide, you can view Thermax Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Thermax Limited offers solutions to energy, environment and chemical sectors. The Company’s portfolio includes boilers and heaters, absorption chillers/ heat pumps, power plants, solar equipment, air pollution control equipment/system, water and waste recycle plant, ion exchange resins and performance chemicals and related services. [1]

Website thermaxglobal.com
CEO Mr. Ashish Bhandari
Employees 5,601
Listed 1995-08-30
Face Value ₹ 2
Issued Size 11,91,56,300

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