Thermax (THERMAX)

FairStock Score: 39/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I look first for durable earnings and a sensible price. Thermax is an established heavy electrical equipment player with promoter holding of 61.99%, debt/equity of 0.42, ROCE of 16.22% and ROE of 13.81%. Those are respectable but not exceptional. The balance sheet gives some comfort: Altman Z-Score 3.38 and Piotroski F-Score 8/9 suggest financial strength and accounting discipline. However, business momentum is troubling. Sales growth is 7.10%, while profit growth is -83.40%. The latest quarter had sales of ₹2,635 Cr but net profit of only ₹205 Cr, and free cash flow is negative ₹177 Cr. Reported profits are not converting into cash. The five-year revenue CAGR of 12.63% is acceptable, but it cannot justify a P/E of 76.93, P/B of 8.21, PEG of 10.00, EV/EBITDA of 81.26 and dividend yield of only 0.35%. Graham's number is ₹730.29, so at ₹4,044.90 the margin of safety is -326.93%—the price is far above a conservative intrinsic value estimate. The 52-week range of ₹2,742.70 to ₹5,277.00 shows volatility, and the FairStock score of 39/100 is mixed. I would not call this a bargain. The high promoter stake and low leverage are positives, but they do not make the stock cheap. In Indian capital goods, cycles can turn, but at nearly 77 times earnings, much of a recovery may already be priced in. I want to see profit recovery, positive free cash flow and a valuation that offers protection. Until then, this is a cyclical industrial with a strong balance sheet but a demanding price. Mr. Market is optimistic; I prefer patience.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer