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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Thermax Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:21 pm

Market Cap 61,333 Cr.
Current Price 5,140
High / Low5,700/2,192
Stock P/E104
Book Value 373
Dividend Yield0.23 %
ROCE16.9 %
ROE14.1 %
Face Value 2.00
PEG Ratio4.18

Competitors of Thermax Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Lokesh Machines Ltd 794 Cr. 429476/17557.3 1060.00 %11.4 %7.80 % 10.0
Mold-Tek Technologies Ltd 760 Cr. 266399/18027.3 42.81.28 %31.3 %24.7 % 2.00
Balu Forge Industries Ltd 3,509 Cr. 342344/15537.5 53.90.00 %30.0 %25.0 % 10.0
Birla Precision Technologies Ltd 400 Cr. 60.676.7/38.037.5 23.20.08 %11.9 %7.46 % 2.00
McNally Bharat Engineering Company Ltd 104 Cr. 4.917.23/2.90 1990.00 %%% 10.0
Industry Average2,900.73 Cr599.2930.92119.270.23%20.53%18.53%6.20

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,5751,0521,4691,6151,9921,6542,0752,0492,3111,9332,3022,3242,764
Expenses1,4359891,3591,5021,8571,5591,9351,8882,1111,8012,0982,1372,491
Operating Profit1406311011313596140161200132204187273
OPM %9%6%7%7%7%6%7%8%9%7%9%8%10%
Other Income36253729362140425826618555
Interest6555107891413202728
Depreciation29272729292930292929333650
Profit before tax140561141081328114216521491217309251
Tax %24%25%23%26%22%28%23%23%27%34%27%23%25%
Net Profit1074288791035910912615660159237188
EPS in Rs9.013.567.386.678.614.959.1610.5913.094.9413.2420.0015.97

Last Updated: June 10, 2024, 2:27 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:13 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5,4905,0815,3045,1454,4834,4655,9735,7314,7916,1288,0909,323
Expenses4,9894,6314,8424,7124,0494,0885,5165,3314,4355,7157,4898,527
Operating Profit501450462433434377457401356414601797
OPM %9%9%9%8%10%8%8%7%7%7%7%9%
Other Income847073118951156010554135156308
Interest263982121013141521253888
Depreciation779213472828292117115113117148
Profit before tax481389319467438397410375275410603869
Tax %37%44%54%31%36%42%21%43%25%24%25%26%
Net Profit304220148282216231325212207312451643
EPS in Rs26.8720.6417.6023.6918.7219.4827.3117.8317.3426.2137.7954.15
Dividend Payout %26%29%40%24%30%29%24%37%38%32%25%21%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-27.63%-32.73%90.54%-23.40%6.94%40.69%-34.77%-2.36%50.72%44.55%42.57%
Change in YoY Net Profit Growth (%)0.00%-5.10%123.27%-113.94%30.35%33.75%-75.46%32.41%53.08%-6.17%-1.98%

Growth

Compounded Sales Growth
10 Years:4%
5 Years:13%
3 Years:12%
TTM:14%
Compounded Profit Growth
10 Years:4%
5 Years:14%
3 Years:29%
TTM:37%
Stock Price CAGR
10 Years:20%
5 Years:37%
3 Years:46%
1 Year:100%
Return on Equity
10 Years:10%
5 Years:10%
3 Years:10%
Last Year:12%

Last Updated: May 2, 2024, 10:45 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital24242424232323232323232323
Reserves1,6061,8452,0142,1232,3942,5152,6922,9923,0053,2293,4703,8463,966
Borrowings2734237616881951362342402303283688311,074
Other Liabilities2,7712,6963,1423,2552,5542,3712,9803,5352,6932,9213,5984,1374,251
Total Liabilities4,6734,9885,9426,0895,1665,0445,9296,7905,9516,5007,4588,8369,313
Fixed Assets8448731,5271,4318278119731,3121,2831,2421,1951,2481,899
CWIP24751754436014110340562444434264
Investments2404437088221,0501,0831,4728298752341,4771,6261,723
Other Assets3,3433,1543,6543,7933,2283,0093,3814,6093,7374,9994,7425,5285,427
Total Assets4,6734,9885,9426,0895,1665,0445,9296,7905,9516,5007,4588,8369,313

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 26187321311253335534-115326769325460
Cash from Investing Activity -234-498-38280-127-99-507266-140-627-420-664
Cash from Financing Activity -1835191-351-112-126-20-65-23277-21349
Net Cash Flow10-3771303913110785-47220-115144

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow78.00-311.00-226.00238.00298.00143.00217.00171.0028.0046.00-230.00796.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days8210310512295841028488948580
Inventory Days723653553946575654587660
Days Payable92107119135126162161150114164153118
Cash Conversion Cycle623140427-32-3-1028-11821
Working Capital Days-6314-12-2-0-2685-28-26-21
ROCE %35%22%15%14%18%18%15%17%12%10%12%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters61.98%61.98%61.98%61.98%61.98%61.99%61.99%61.99%61.99%61.99%61.99%61.99%
FIIs12.73%12.35%12.28%11.84%11.93%12.35%12.27%12.29%12.35%12.54%12.01%12.24%
DIIs14.45%15.00%15.02%15.68%15.77%15.34%15.35%15.63%15.50%15.46%15.86%15.82%
Public5.35%5.18%5.23%5.01%4.83%4.84%4.90%4.59%4.67%4.54%4.66%4.48%
Others5.49%5.49%5.49%5.49%5.49%5.49%5.49%5.49%5.49%5.48%5.48%5.48%
No. of Shareholders32,51532,01534,08834,44036,25537,91039,94336,10339,81535,61639,54740,819

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan3,066,7152.5975.6331,8692024-06-19824.07%
Kotak Flexicap Fund - Regular Plan3,035,0002.17965.51331,8692024-06-19814.52%
SBI Blue Chip Fund1,729,3341.27550.14331,8692024-06-19421.09%
SBI Magnum Midcap Fund1,511,2023.01480.75331,8692024-06-19355.36%
Mirae Asset Midcap Fund883,4391.96281.04331,8692024-06-19166.2%
Kotak Equity Opportunities Fund - Regular Plan850,0001.48270.41331,8692024-06-19156.13%
DSP Mid Cap Fund833,5781.6265.18331,8692024-06-19151.18%
Kotak Small Cap Fund - Regular Plan413,9700.91131.69331,8692024-06-1924.74%
Tata Mid Cap Growth Fund - Regular Plan331,8693.27105.58331,8692024-06-190%
Aditya Birla Sun Life Midcap Fund257,0691.6481.78331,8692024-06-19-22.54%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)57.3039.9827.7318.3418.87
Diluted EPS (Rs.)57.2839.9827.7318.3418.87
Cash EPS (Rs.)70.3550.4337.7828.5229.23
Book Value[Excl.RevalReserv]/Share (Rs.)394.30343.71310.17288.76268.91
Book Value[Incl.RevalReserv]/Share (Rs.)394.30343.71310.17288.76268.91
Revenue From Operations / Share (Rs.)828.02718.46544.26425.51509.00
PBDIT / Share (Rs.)91.4767.2948.7041.1144.95
PBIT / Share (Rs.)78.3256.9238.6430.9434.60
PBT / Share (Rs.)77.2553.5836.4124.4433.26
Net Profit / Share (Rs.)57.1940.0527.7218.3518.87
NP After MI And SOA / Share (Rs.)57.3139.9927.7418.3518.87
PBDIT Margin (%)11.049.368.949.668.83
PBIT Margin (%)9.457.927.107.276.79
PBT Margin (%)9.327.456.685.746.53
Net Profit Margin (%)6.905.575.094.313.70
NP After MI And SOA Margin (%)6.925.565.094.313.70
Return on Networth / Equity (%)14.5311.648.946.357.01
Return on Capital Employeed (%)16.2414.4611.7510.1312.29
Return On Assets (%)6.355.094.183.173.56
Long Term Debt / Equity (X)0.170.100.010.010.01
Total Debt / Equity (X)0.280.200.100.090.06
Asset Turnover Ratio (%)0.980.750.670.560.57
Current Ratio (X)1.361.381.261.451.43
Quick Ratio (X)1.201.211.071.321.26
Inventory Turnover Ratio (X)6.705.106.044.664.61
Dividend Payout Ratio (NP) (%)0.0022.660.000.0074.21
Dividend Payout Ratio (CP) (%)0.0017.990.000.0047.90
Earning Retention Ratio (%)0.0077.340.000.0025.79
Cash Earning Retention Ratio (%)0.0082.010.000.0052.10
Interest Coverage Ratio (X)11.7620.1621.7922.4333.70
Interest Coverage Ratio (Post Tax) (X)7.4913.0013.4013.5515.14
Enterprise Value (Cr.)47521.9625466.5121278.4113522.388062.21
EV / Net Operating Revenue (X)5.103.153.472.821.41
EV / EBITDA (X)46.1433.6138.8029.2115.93
MarketCap / Net Operating Revenue (X)5.073.193.573.161.45
Retention Ratios (%)0.0077.330.000.0025.78
Price / BV (X)10.646.676.264.662.75
Price / Net Operating Revenue (X)5.073.193.573.161.45
EarningsYield0.010.010.010.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 5,482.25

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.66% compared to the current price 5140

Intrinsic Value: 6,846.18

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 33.19% compared to the current price ₹5140

Last 5 Year EPS CAGR: 24.88%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -7.58, which is a positive sign.
  3. The company has higher reserves (2,878.50 cr) compared to borrowings (475.92 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (5.42 cr) and profit (452.75 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 15.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Thermax Ltd:
    1. Net Profit Margin: 6.90%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.24% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.53% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.49
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.20
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 104 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.28
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Thermax Ltd. is a Public Limited Listed company incorporated on 30/06/1980 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29299PN1980PLC022787 and registration number is 022787. Currently Company is involved in the business activities of Treatment of waste water or sewer by means of physical, chemical or biological processes. Company’s Total Operating Revenue is Rs. 4015.39 Cr. and Equity Capital is Rs. 23.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralD-13, MIDC, Industrial Area, Pune Maharashtra 411019cservice@thermaxglobal.com
http://www.thermaxglobal.com
Management
NamePosition Held
Mrs. Meher PudumjeeChairperson
Mr. Ashish BhandariManaging Director & CEO
Mr. Pheroz PudumjeeNon Executive Director
Mr. Harsh MariwalaIndependent Director
Dr. Jairam VaradarajIndependent Director
Mr. Nawshir MirzaIndependent Director
Ms. Rajani KesariIndependent Director
Mr. S B Ravi PanditIndependent Director
Dr. Ravi GopinathIndependent Director

FAQ

What is the latest fair value of Thermax Ltd?

The latest fair value of Thermax Ltd is ₹5482.25.

What is the Market Cap of Thermax Ltd?

The Market Cap of Thermax Ltd is 61,333 Cr..

What is the current Stock Price of Thermax Ltd as on 21 June 2024?

The current stock price of Thermax Ltd as on 21 June 2024 is ₹5,140.

What is the High / Low of Thermax Ltd stocks in FY 2024?

In FY 2024, the High / Low of Thermax Ltd stocks is 5,700/2,192.

What is the Stock P/E of Thermax Ltd?

The Stock P/E of Thermax Ltd is 104.

What is the Book Value of Thermax Ltd?

The Book Value of Thermax Ltd is 373.

What is the Dividend Yield of Thermax Ltd?

The Dividend Yield of Thermax Ltd is 0.23 %.

What is the ROCE of Thermax Ltd?

The ROCE of Thermax Ltd is 16.9 %.

What is the ROE of Thermax Ltd?

The ROE of Thermax Ltd is 14.1 %.

What is the Face Value of Thermax Ltd?

The Face Value of Thermax Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Thermax Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE