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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Thermax Ltd

About the Company - Thermax Ltd

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

Thermax Ltd. Share Price Update

Share PriceValue
Today₹3,730.00
Previous Day₹3,720.40

Basic Stock Data of Thermax Ltd

Market Cap 43,937 Cr.
Current Price 3,687
High / Low3,895/2,121
Stock P/E80.6
Book Value 335
Dividend Yield0.27 %
ROCE15.1 %
ROE12.3 %
Face Value 2.00

Data Source: screener.in

Competitors of Thermax Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
McNally Bharat Engineering Company Ltd 136 Cr. 6.457.23/2.90 1770.00 %28.3 %% 10.0
Mazda Ltd 572 Cr. 1,4271,661/60417.4 4840.98 %21.0 %15.4 % 10.0
Acrow India Ltd 43.9 Cr. 6861,122/61170.8 3550.00 %1.80 %1.48 % 10.0
Salasar Techno Engineering Ltd 3,828 Cr. 24.234.1/7.2074.9 2.640.08 %14.3 %11.9 % 1.00
Manugraph India Ltd 79.5 Cr. 26.235.2/14.2 32.60.00 %12.5 %17.5 % 2.00
Industry Average931.88 Cr433.9732.62210.250.21%15.58%9.26%6.60

Thermax Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,4111,5751,0521,4691,6151,9921,6542,0752,0492,3111,9332,3022,324
Expenses1,2631,4359891,3591,5021,8571,5591,9351,8882,1111,8012,0982,137
Operating Profit1481406311011313596140161200132204187
OPM %10%9%6%7%7%7%6%7%8%9%7%9%8%
Other Income0362537293621404258266185
Interest665551078914132027
Depreciation29292727292929302929293336
Profit before tax113140561141081328114216521491217309
Tax %26%24%25%23%26%22%28%23%23%27%34%27%23%
Net Profit831074288791035910912615660159237
EPS in Rs6.999.013.567.386.678.614.959.1610.5913.094.9413.2420.00

Thermax Ltd Quarterly Chart

Thermax Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,0875,4905,0815,3045,1454,4834,4655,9735,7314,7916,1288,0908,595
Expenses5,4924,9894,6314,8424,7124,0494,0885,5165,3314,4355,7157,4897,899
Operating Profit595501450462433434377457401356414601697
OPM %10%9%9%9%8%10%8%8%7%7%7%7%8%
Other Income90847073118951156010554135156168
Interest22263982121013141521253856
Depreciation66779213472828292117115113117121
Profit before tax596481389319467438397410375275410603688
Tax %34%37%44%54%31%36%42%21%43%25%24%25%
Net Profit392304220148282216231325212207312451501
EPS in Rs33.8626.8720.6417.6023.6918.7219.4827.3117.8317.3426.2137.7941.86
Dividend Payout %21%26%29%40%24%30%29%24%37%38%32%25%

Thermax Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-22.45%-27.63%-32.73%90.54%-23.40%6.94%40.69%-34.77%-2.36%50.72%44.55%
Change in YoY Net Profit Growth (%)0.00%-5.18%-5.10%123.27%-113.94%30.35%33.75%-75.46%32.41%53.08%-6.17%

Thermax Ltd 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:18%
5 Years:29%
3 Years:44%
1 Year:73%
Return on Equity
10 Years:10%
5 Years:10%
3 Years:10%
Last Year:12%

Thermax Ltd 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

Thermax Ltd Reserves and Borrowings Chart

Thermax Ltd 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

Thermax Ltd 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%

Thermax Ltd Financial Efficiency Indicators Chart

Thermax Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters61.98%61.98%61.98%61.98%61.98%61.98%61.99%61.99%61.99%61.99%61.99%61.99%
FIIs12.45%12.73%12.35%12.28%11.84%11.93%12.35%12.27%12.29%12.35%12.54%12.01%
DIIs14.60%14.45%15.00%15.02%15.68%15.77%15.34%15.35%15.63%15.50%15.46%15.86%
Public5.48%5.35%5.18%5.23%5.01%4.83%4.84%4.90%4.59%4.67%4.54%4.66%
Others5.49%5.49%5.49%5.49%5.49%5.49%5.49%5.49%5.49%5.49%5.48%5.48%
No. of Shareholders31,54632,51532,01534,08834,44036,25537,91039,94336,10339,81535,61639,547

Thermax Ltd Shareholding Pattern Chart

No. of Thermax Ltd Shareholders

Thermax Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan30667152.5975.6
Kotak Flexicap Fund - Regular Plan30350002.17965.51
SBI Blue Chip Fund17293341.27550.14
SBI Magnum Midcap Fund15112023.01480.75
Mirae Asset Midcap Fund8834391.96281.04
Kotak Equity Opportunities Fund - Regular Plan8500001.48270.41
DSP Mid Cap Fund8335781.6265.18
Kotak Small Cap Fund - Regular Plan4139700.91131.69
Tata Mid Cap Growth Fund - Regular Plan3318693.27105.58
Aditya Birla Sun Life Midcap Fund2570691.6481.78

Thermax Ltd ROCE Trend

Thermax Ltd EPS Trend

Thermax Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)39.9827.7318.3418.8728.90
Diluted EPS (Rs.)39.9827.7318.3418.8728.90
Cash EPS (Rs.)50.4337.7828.5229.2337.17
Book Value[Excl.RevalReserv]/Share (Rs.)343.71310.17288.76268.91267.70
Book Value[Incl.RevalReserv]/Share (Rs.)343.71310.17288.76268.91267.70
Revenue From Operations / Share (Rs.)718.46544.26425.51509.00530.48
PBDIT / Share (Rs.)67.2948.7041.1144.9553.94
PBIT / Share (Rs.)56.9238.6430.9434.6045.76
PBT / Share (Rs.)53.5836.4124.4433.2636.54
Net Profit / Share (Rs.)40.0527.7218.3518.8729.00
NP After MI And SOA / Share (Rs.)39.9927.7418.3518.8728.90
PBDIT Margin (%)9.368.949.668.8310.16
PBIT Margin (%)7.927.107.276.798.62
PBT Margin (%)7.456.685.746.536.88
Net Profit Margin (%)5.575.094.313.705.46
NP After MI And SOA Margin (%)5.565.094.313.705.44
Return on Networth / Equity (%)11.648.946.357.0110.79
Return on Capital Employeed (%)14.4611.7510.1312.2916.37
Return On Assets (%)5.094.183.173.564.78
Long Term Debt / Equity (X)0.100.010.010.010.01
Total Debt / Equity (X)0.200.100.090.060.07
Asset Turnover Ratio (%)0.750.670.560.570.58
Current Ratio (X)1.381.261.451.431.30
Quick Ratio (X)1.211.071.321.261.16
Inventory Turnover Ratio (X)5.106.044.664.617.07
Dividend Payout Ratio (NP) (%)22.660.000.0074.2120.76
Dividend Payout Ratio (CP) (%)17.990.000.0047.9016.18
Earning Retention Ratio (%)77.340.000.0025.7979.24
Cash Earning Retention Ratio (%)82.010.000.0052.1083.82
Interest Coverage Ratio (X)20.1621.7922.4333.7042.41
Interest Coverage Ratio (Post Tax) (X)13.0013.4013.5515.1430.05
Enterprise Value (Cr.)25466.5121278.4113522.388062.2110798.55
EV / Net Operating Revenue (X)3.153.472.821.411.81
EV / EBITDA (X)33.6138.8029.2115.9317.78
MarketCap / Net Operating Revenue (X)3.193.573.161.451.83
Retention Ratios (%)77.330.000.0025.7879.23
Price / BV (X)6.676.264.662.753.63
Price / Net Operating Revenue (X)3.193.573.161.451.83
EarningsYield0.010.010.010.020.02

Thermax Ltd Profitability Ratios (%)

Thermax Ltd Liquidity Ratios

Thermax Ltd Liquidity Ratios (%)

Thermax Ltd Interest Coverage Ratios (X)

Thermax Ltd Valuation Ratios

Fair Value / Intrinsic Value of Thermax Ltd

Fair Value: ₹3330.09

The stock is overvalued by 9.68% compared to the current price ₹3687

*Investments are subject to market risks

Strength and Weakness of Thermax Ltd

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 (2,745.92 cr) compared to borrowings (444.69 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (5.38 cr) and profit (449.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 41.37 and average Dividend Yield of 7.54%.
  2. The stock has a high average Cash Conversion Cycle of 15.25, which may not be favorable.

Should I Buy Thermax Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Thermax Ltd:
    1. Net Profit Margin: 5.57%
      • 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: 14.46% (Industry Average ROCE: 15.58%)
      • 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. Interest Coverage Ratio (Post Tax): 13.00
      • 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.
    4. Quick Ratio: 1.21
      • 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.
    5. ✗ Stock P/E: 80.6 (Industry average Stock P/E: 32.62)
      • 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.
    6. ✓ Total Debt / Equity: 0.20
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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