Stock Analysis Report

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Executive Summary

Thermax Limited provides engineering solutions in India and internationally.

Snowflake Analysis

Excellent balance sheet established dividend payer.

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Share Price & News

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

Latest Share Price and Events

Stable Share Price: THERMAX's share price has been volatile over the past 3 months.

Market Performance

7 Day Return




IN Machinery


IN Market

1 Year Return




IN Machinery


IN Market

Return vs Industry: THERMAX matched the Indian Machinery industry which returned -29.3% over the past year.

Return vs Market: THERMAX underperformed the Indian Market which returned -17.6% over the past year.

Shareholder returns

7 Day1.2%7.6%7.4%
30 Day4.1%5.6%6.7%
90 Day-16.4%-16.2%-11.1%
1 Year-27.4%-28.6%-28.0%-29.3%-16.0%-17.6%
3 Year-22.1%-24.3%-27.6%-30.5%-5.4%-10.4%
5 Year-20.0%-23.3%-3.3%-9.2%19.3%8.0%

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


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


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: THERMAX (₹729.1) is trading above our estimate of fair value (₹315.15)

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 (27.3x) compared to the Machinery industry average (10.9x).

PE vs Market: THERMAX is poor value based on its PE Ratio (27.3x) compared to the Indian market (10.4x).

Price to Earnings Growth Ratio

PEG Ratio: THERMAX is poor value based on its PEG Ratio (1.6x)

Price to Book Ratio

PB vs Industry: THERMAX is overvalued based on its PB Ratio (2.7x) compared to the IN Machinery industry average (0.9x).

Next Steps

Future Growth

How is Thermax forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: THERMAX's forecast earnings growth (17.5% per year) is above the savings rate (7.2%).

Earnings vs Market: THERMAX's earnings (17.5% per year) are forecast to grow slower than the Indian market (18% per year).

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

Revenue vs Market: THERMAX's revenue (3.5% per year) is forecast to grow slower than the Indian market (7.1% per year).

High Growth Revenue: THERMAX's revenue (3.5% 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 (11.2%).

Next Steps

Past Performance

How has Thermax performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: THERMAX has high quality earnings.

Growing Profit Margin: THERMAX's current net profit margins (4.6%) are lower than last year (5.1%).

Past Earnings Growth Analysis

Earnings Trend: THERMAX's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: THERMAX's earnings growth over the past year (9.5%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: THERMAX earnings growth over the past year (9.5%) exceeded the Machinery industry -6.6%.

Return on Equity

High ROE: THERMAX's Return on Equity (10%) is considered low.

Next Steps

Financial Health

How is Thermax's financial position?

Financial Position Analysis

Short Term Liabilities: THERMAX's short term assets (₹43.0B) exceed its short term liabilities (₹32.1B).

Long Term Liabilities: THERMAX's short term assets (₹43.0B) exceed its long term liabilities (₹1.3B).

Debt to Equity History and Analysis

Debt Level: THERMAX's debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: THERMAX's debt to equity ratio has reduced from 34% to 5.4% over the past 5 years.

Debt Coverage: THERMAX's debt is not well covered by operating cash flow (19.8%).

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

Balance Sheet

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: THERMAX's dividend (0.96%) is higher than the bottom 25% of dividend payers in the Indian market (0.82%).

High Dividend: THERMAX's dividend (0.96%) is low compared to the top 25% of dividend payers in the Indian market (3.37%).

Stability and Growth of Payments

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 reasonably low payout ratio (26.2%), 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 (28.7% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Unny Unnikrishnan (58yo)





Mr. M. S. Unnikrishnan, also known as Unny, has been the Chief Executive Officer and Managing Director at Thermax Ltd. since July 1, 2007. Mr. Unnikrishnan serves as Additional Independent Directors at KEC ...

CEO Compensation Analysis

Compensation vs Market: Unny's total compensation ($USD693.65K) is above average for companies of similar size in the Indian market ($USD450.15K).

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

Leadership Team

M. Unnikrishnan
MD, CEO12.92yrs₹52.26mno data
Kedar Phadke
Company Secretary & Compliance Officer2.83yrs₹3.14mno data
Ashish Bhandari
Joint Managing Director0.17yrno datano data
Rajendran Arunachalam
Executive VP1yrno datano data
R. Sonde
Executive VP of Research13.42yrsno datano data
Hemant Mohgaonkar
Executive VP of Cooling & Heating and Member of Executive Councilno datano datano data
Sharad Gangal
Executive VP of HR10yrsno datano data
Pravin Karve
Executive VP of Boiler & Heater Group and Member of Executive Council9.83yrsno datano data
B. Mahesh
Executive VP of Power & Member of the Executive Council6.83yrsno datano data
Prosenjit Sengupta
Executive VP1.58yrsno datano data


Average Tenure

Experienced Management: THERMAX's management team is seasoned and experienced (6.8 years average tenure).

Board Members

M. Unnikrishnan
MD, CEO12.92yrs₹52.26mno data
Ashish Bhandari
Joint Managing Director0.17yrno datano data
Harshraj Mariwala
Non-Executive Independent Director3.58yrs₹2.40mno data
Sashishekhar Pandit
Non-Executive Independent Director3.08yrs₹1.95mno data
Meher Pudumjee
Chairperson 15.67yrs₹5.20mno data
Pheroz Pudumjee
Non-Executive Director19.42yrs₹2.85m0.0053% 4.5m
Nawshir Mirza
Independent Director9.08yrs₹4.05mno data
Jairam Varadaraj
Independent Director17.42yrs₹2.30mno data
Valentin A. von Massow
Independent Director13.92yrs₹3.65mno data
Rajani Kesari
Independent Director1.58yrs₹775.00kno data


Average Tenure


Average Age

Experienced Board: THERMAX's board of directors are considered experienced (9.1 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

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: ₹83.881b
  • Shares outstanding: 112.61m
  • Website: https://www.thermaxglobal.com

Number of Employees


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


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


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 and transformers, and solar-based and process cooling products; waste heat recovery systems, industrial boilers, solar-based heating, and fired heaters; and power plants, balance of plant, and operation and maintenance services. It also provides solar thermal and photovoltaic systems; and steam boilers, thermic fluid heaters, hot water and air heaters/generators, waste HRB, and energy plants. In addition, the company offers steam accessories, such as condensate recovery systems, steam traps, pre-fabricated modules, pressure reducing stations, pressure reducing and desuper heating systems, valves, steam line mountings, boiler house products, and monitoring equipment. Further, it provides electrostatic precipitators, bag filters, particulate and gaseous scrubbers, combofilters, flue gas desulphurization, selective catalytic and non-catalytic reduction, and thermax modular gas coolers; water and waste management systems and solutions, such as water treatment, effluent and sewage treatment and recycling, and incineration; and chemicals, such as water treatment, fireside, green, sugar industry, paper, and oil field chemicals, as well as fuel additives and ion exchange resins. The company also provides energy, retrofit and revamp, utility outsourcing, customer training, and specialized services and solutions; and spares. It serves oil and gas, steel, automobile, food, cement, chemical, power generation, textile, hotel and commercial complex, pharmaceutical, refineries and petrochemical, and brewery industries. The company was founded in 1966 and is headquartered in Pune, India. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 13:11
End of Day Share Price2020/06/04 00:00
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.