NSEI:THERMAX

Stock Analysis Report

Executive Summary

Thermax Limited provides engineering solutions in India and internationally.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Thermax's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

THERMAX

2.5%

IN Machinery

2.4%

IN Market


1 Year Return

18.5%

THERMAX

-7.9%

IN Machinery

8.0%

IN Market

Return vs Industry: THERMAX exceeded the Indian Machinery industry which returned -7.9% over the past year.

Return vs Market: THERMAX exceeded the Indian Market which returned 8% over the past year.


Shareholder returns

THERMAXIndustryMarket
7 Day2.1%2.5%2.4%
30 Day3.8%1.5%2.5%
90 Day5.5%-0.3%3.6%
1 Year19.3%18.5%-6.3%-7.9%10.3%8.0%
3 Year36.5%34.0%-1.3%-5.1%22.3%16.0%
5 Year33.6%29.4%39.4%31.5%42.8%29.3%

Price Volatility Vs. Market

How volatile is Thermax's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Thermax undervalued compared to its fair value and its price relative to the market?

37.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: THERMAX (₹1139.4) is trading above our estimate of fair value (₹592.66)

Significantly Below Fair Value: THERMAX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: THERMAX is poor value based on its PE Ratio (37.8x) compared to the Machinery industry average (12.5x).

PE vs Market: THERMAX is poor value based on its PE Ratio (37.8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: THERMAX is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: THERMAX is overvalued based on its PB Ratio (4.3x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Thermax forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THERMAX's forecast earnings growth (18.3% per year) is above the savings rate (7.6%).

Earnings vs Market: THERMAX's earnings (18.3% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: THERMAX's earnings are forecast to grow, but not significantly.

Revenue vs Market: THERMAX's revenue (10.6% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: THERMAX's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THERMAX's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Thermax performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: THERMAX's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: THERMAX's earnings growth over the past year (41.1%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: THERMAX earnings growth over the past year (41.1%) exceeded the Machinery industry 13.2%.


Return on Equity

High ROE: THERMAX's Return on Equity (11.3%) is considered low.


Return on Assets

ROA vs Industry: THERMAX's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: THERMAX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Thermax's financial position?


Financial Position Analysis

Short Term Liabilities: THERMAX's short term assets (₹47.4B) exceeds its short term liabilities (₹36.5B)

Long Term Liabilities: THERMAX's short term assets (47.4B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: THERMAX's debt to equity ratio (8.3%) is considered satisfactory

Reducing Debt: THERMAX's debt to equity ratio has reduced from 35% to 8.3% over the past 5 years.

Debt Coverage: THERMAX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: THERMAX earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: THERMAX has a high level of physical assets or inventory.

Debt Coverage by Assets: THERMAX's debt is covered by short term assets (assets are 19.006250x debt).


Next Steps

Dividend

What is Thermax's current dividend yield, its reliability and sustainability?

0.61%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: THERMAX's dividend (0.61%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: THERMAX's dividend (0.61%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: THERMAX's dividends per share have been stable in the past 10 years.

Growing Dividend: THERMAX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.2%), THERMAX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: THERMAX's dividends in 3 years are forecast to be well covered by earnings (24.9% payout ratio).


Next Steps

Management

What is the CEO of Thermax's salary, the management and board of directors tenure and is there insider trading?

9.3yrs

Average management tenure


CEO

M. Unnikrishnan (58yo)

12.3yrs

Tenure

₹52,258,505

Compensation

Mr. M. S. Unnikrishnan has been the Chief Executive Officer and Managing Director at Thermax Ltd. since July 1, 2007. Mr. Unnikrishnan has been the Managing Director of Thermax Surface Coatings Ltd., since ...


CEO Compensation Analysis

Compensation vs. Market: M.'s total compensation ($USD737.17K) is about average for companies of similar size in the Indian market ($USD642.68K).

Compensation vs Earnings: M.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.3yrs

Average Tenure

Experienced Management: THERMAX's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

60yo

Average Age

Experienced Board: THERMAX's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • R. Sonde

    Executive VP of Research

    • Tenure: 12.8yrs
  • M. Unnikrishnan (58yo)

    MD, CEO

    • Tenure: 12.3yrs
    • Compensation: ₹52.26m
  • Ravinder Advani (69yo)

    Executive VP & Member of Executive Council

    • Tenure: 16.8yrs
    • Compensation: ₹3.20m
  • Hemant Mohgaonkar

    Executive VP of Cooling & Heating and Member of Executive Council

    • Tenure: 0yrs
  • Sharad Gangal

    Executive VP of HR

    • Tenure: 9.3yrs
  • Pravin Karve

    Executive VP of Boiler & Heater Group and Member of Executive Council

    • Tenure: 9.2yrs
  • B. Mahesh

    Executive VP of Power & Member of the Executive Council

    • Tenure: 6.2yrs
  • Rajendran Arunachalam

    Executive VP

    • Tenure: 0.3yrs
  • Kedar Phadke

    Company Secretary & Compliance Officer

    • Tenure: 2.2yrs
    • Compensation: ₹3.14m
  • Prosenjit Sengupta

    Member of Executive Council

    • Tenure: 0yrs

Board Members

  • Harsh Mariwala (68yo)

    Non-Executive Independent Director

    • Tenure: 2.9yrs
    • Compensation: ₹2.40m
  • Ravi Pandit (69yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹1.95m
  • Meher Pudumjee

    Chairperson

    • Tenure: 15yrs
    • Compensation: ₹5.20m
  • Pheroz Pudumjee (57yo)

    Non-Executive Director

    • Tenure: 18.8yrs
    • Compensation: ₹2.85m
  • Nawshir Mirza (69yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: ₹4.05m
  • Jairam Varadaraj (58yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: ₹2.30m
  • M. Unnikrishnan (58yo)

    MD, CEO

    • Tenure: 12.3yrs
    • Compensation: ₹52.26m
  • Valentin A. von Massow (62yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: ₹3.65m
  • Rajani Kesari (48yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: ₹775.00k

Company Information

Thermax Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Thermax Limited
  • Ticker: THERMAX
  • Exchange: NSEI
  • Founded: 1966
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹126.140b
  • Shares outstanding: 112.61m
  • Website: https://www.thermaxglobal.com

Number of Employees


Location

  • Thermax Limited
  • Thermax House
  • 14 Mumbai-Pune Road
  • Pune
  • Maharashtra
  • 411003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500411BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1995
THERMAXNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1995

Biography

Thermax Limited provides engineering solutions in India and internationally. It operates through three segments: Energy, Environment, and Chemical. The company offers vapor absorption chillers, heat pumps  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:50
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.