Q3FY20 consolidated result highlights
New MD being appointed: With the retirement of Mr. Unnikrishnan in Jun-20, Mr Ashish Bhandari will be joining Thermax effective 20th April 2020 (Jt. MD) and will subsequently be appointed as MD & CEO. Mr. Bhandari is currently Vice President – India & South Asia for Baker Huges (formerly a GE company; integrated oil field services company).
Impact on financials: Cut FY20E/21E EPS by 6/13% to Rs25.3/32.8
Valuations & view
Thermax continues to focus on its core strength by widening product offering and expanded capacities and increasing its international presence. Concurrently, it is operating on lean cost structure which has enabled it to win orders with healthy margins. However, the lack of broad based capex cycle recovery and sustained competitive intensity is likely to drive muted inflows. Accordingly, we believe valuations at 29x FY21E earnings captures near term earnings momentum (10% CAGR over FY19-21E). Maintain Neutral.
Thermax is engaged in the manufacture and development of a range of products and solutions in heating, cooling and power generation. In addition, Co. is engaged in the provision of water treatment, waste management and air pollution controlling services and the manufacture of related fuel and water chemicals. Co., through its subsidiaries, is engaged in the manufacture and sale of industrial boilers suitable for various fuels, CFBC boilers for power plants; painting equipment; measuring, checking and pressure instruments; process control and regulating instruments; and provision of lease, hire purchase, bill discounting and other finance related services.
IDFC Securities Ltd., a subsidiary of the Infrastructure Development Finance Company (IDFC) wherein the Government of India holds a 20% interest, is India's leading equities broker catering to most of the prominent financial institutions, both foreign and domestic investing in Indian equities. A research team of experienced and dedicated experts ensures the flow of critically investigated stock ideas and portfolio strategies for our clients. Our coverage spans across various growth sectors such as agriculture, automobiles, Consumer Goods, Technology, Healthcare, Infrastructure, Media, Power, Real Estate, Telecom, Capital Goods, Logistics, Cement amongst other sectors. Our clients value us for our strong research-led investment ideas, superior client servicing track record and exceptional execution skills.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.