Thermax Limited

NSEI:THERMAX Stock Report

Market Cap: ₹563.5b

Thermax Valuation

Is THERMAX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of THERMAX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: THERMAX (₹5003.85) is trading above our estimate of fair value (₹1603.92)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for THERMAX?

Key metric: As THERMAX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for THERMAX. This is calculated by dividing THERMAX's market cap by their current earnings.
What is THERMAX's PE Ratio?
PE Ratio76x
Earnings₹7.42b
Market Cap₹563.54b

Price to Earnings Ratio vs Peers

How does THERMAX's PE Ratio compare to its peers?

The above table shows the PE ratio for THERMAX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average47.6x
505790 Schaeffler India
58.7x17.6%₹534.4b
AIAENG AIA Engineering
30.3x6.3%₹320.2b
522113 Timken India
61.7x20.9%₹243.9b
500472 SKF India
39.8x13.9%₹222.9b
THERMAX Thermax
76x17.3%₹563.5b

Price-To-Earnings vs Peers: THERMAX is expensive based on its Price-To-Earnings Ratio (76x) compared to the peer average (47.6x).

Price to Earnings Ratio vs Industry

How does THERMAX's PE Ratio compare vs other companies in the IN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
504220 W.S. Industries (India)
4.7xn/aUS$86.17m
No more companies available in this PE range
THERMAX 76.0xIndustry Avg. 35.7xNo. of Companies27PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: THERMAX is expensive based on its Price-To-Earnings Ratio (76x) compared to the Indian Machinery industry average (35.5x).

Price to Earnings Ratio vs Fair Ratio

What is THERMAX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

THERMAX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio76x
Fair PE Ratio43.3x

Price-To-Earnings vs Fair Ratio: THERMAX is expensive based on its Price-To-Earnings Ratio (76x) compared to the estimated Fair Price-To-Earnings Ratio (43.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst THERMAX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹5,003.85
₹4,360.42
-12.9%
22.0%₹6,075.00₹2,400.00n/a19
Nov ’25₹4,996.95
₹4,270.28
-14.5%
22.6%₹6,075.00₹2,400.00n/a18
Oct ’25₹5,098.80
₹4,311.37
-15.4%
22.1%₹6,075.00₹2,400.00n/a19
Sep ’25₹4,372.80
₹4,258.70
-2.6%
24.0%₹6,075.00₹1,780.00n/a20
Aug ’25₹5,180.20
₹3,949.95
-23.7%
25.0%₹5,480.00₹1,780.00n/a21
Jul ’25₹5,298.15
₹3,924.71
-25.9%
24.9%₹5,480.00₹1,780.00n/a21
Jun ’25₹5,404.65
₹3,741.29
-30.8%
23.8%₹5,480.00₹1,780.00n/a21
May ’25₹4,669.60
₹3,272.60
-29.9%
20.1%₹4,445.00₹1,780.00n/a20
Apr ’25₹4,288.15
₹3,187.45
-25.7%
19.4%₹4,445.00₹1,780.00n/a20
Mar ’25₹3,630.15
₹3,187.45
-12.2%
19.4%₹4,445.00₹1,780.00n/a20
Feb ’25₹3,136.20
₹2,888.74
-7.9%
18.9%₹4,130.00₹1,780.00n/a19
Jan ’25₹3,091.40
₹2,836.00
-8.3%
17.1%₹3,800.00₹1,780.00n/a20
Dec ’24₹2,609.65
₹2,752.43
+5.5%
18.5%₹3,800.00₹1,780.00n/a21
Nov ’24₹2,886.10
₹2,557.42
-11.4%
16.7%₹3,250.00₹1,780.00₹4,996.9519
Oct ’24₹3,110.50
₹2,484.20
-20.1%
15.8%₹3,235.00₹1,780.00₹5,098.8020
Sep ’24₹2,800.15
₹2,432.96
-13.1%
16.7%₹3,235.00₹1,780.00₹4,372.8023
Aug ’24₹2,516.35
₹2,271.48
-9.7%
16.0%₹2,723.00₹1,440.00₹5,180.2023
Jul ’24₹2,281.75
₹2,157.09
-5.5%
21.9%₹2,723.00₹740.00₹5,298.1522
Jun ’24₹2,367.40
₹2,157.09
-8.9%
21.9%₹2,723.00₹740.00₹5,404.6522
May ’24₹2,286.65
₹2,082.10
-8.9%
22.7%₹2,677.00₹740.00₹4,669.6021
Apr ’24₹2,292.70
₹2,064.40
-10.0%
23.1%₹2,677.00₹740.00₹4,288.1520
Mar ’24₹2,195.50
₹2,084.23
-5.1%
22.1%₹2,677.00₹740.00₹3,630.1522
Feb ’24₹1,955.60
₹2,053.18
+5.0%
22.7%₹2,556.00₹740.00₹3,136.2022
Jan ’24₹1,968.20
₹2,073.23
+5.3%
23.6%₹2,880.00₹740.00₹3,091.4022
Dec ’23₹2,051.55
₹2,073.23
+1.1%
23.6%₹2,880.00₹740.00₹2,609.6522
Nov ’23₹2,225.45
₹1,959.57
-11.9%
22.2%₹2,615.00₹740.00₹2,886.1021

Analyst Forecast: Target price is lower than the current share price.

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