This multibagger industrial machinery stock is well-positioned for sustainable growth: Check details

Shares of the industrial equipment firm Thermax in Monday’s session (June 10) closed 1 per cent lower at Rs 5,175.5 after  Nalanda India Equity Fund on Friday sold 15 lakh shares in the counter at an average price of Rs 5,100.26, while SBI Mutual Fund bought 13,74,359 shares in the entity at an average price of Rs 5100, showed the bulk deals data on the BSE.

The stock at day’s low touched levels of Rs 5145.30 apiece on the BSE.

Atul Parakh, CEO of Bigul is of the view that selling in the stock could be on account of profit-booking or near-term concerns, while buying could be driven by attractive valuations and positive order inflow outlook. 

Speaking on the company’s outlook in the near term, he said it looks mixed due to cost pressures and supply chain challenges, but a strong order book provides support. Nonetheless, long-term prospects are promising, backed by infrastructure push, energy transition, and industrial capex revival. 

Thermax's focus on energy-efficient solutions and exposure to sectors like cement and steel positions it well for sustainable growth, broadly in line with the overall capital goods sector's cyclical recovery.

Earlier Motilal Oswal maintained its ‘neutral’ stance on the counter with a revised target of Rs 4,180based on a higher multiple for core business to bake in expected revival in private capex as well as thermal ordering. Further, the brokerage believes that incremental investments in TOESL/FEPL will weigh on balance sheet strength and near- to medium-term return ratios.

Thermax’s stock price performance

Over the past year, the stock has zoomed 122 per cent, more than doubling investors' wealth.

About Thermax

With a m-cap of Rs 62,004.77, Thermax Limited is a midcap stock. The company is primarily engaged in the business of manufacture and sale of boilers, heating and cooling equipment, industrial chemicals, and water and waste management equipment.