Fwd: Thermax Q2FY12 Result Update; Meets expectations; Retain Accumulate; Target: Rs 495 (ERRATA: Please ignore previous mail)

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Deepak Vaishnav

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Oct 29, 2011, 3:19:16 AM10/29/11

ERRATA: Please ignore previous mail

Thermax

Meets expectations; Retain Accumulate

ACCUMULATE

CMP: Rs 425 Target Price: Rs 495

n Meets expectations – (1) Revenue up 19% yoy to Rs13.0 bn (2) EBITDA% down 100 bps yoy to 10.8% - due to high RM prices (3) APAT up 19% yoy to Rs1.0 bn

n Order inflow momentum sustains – amongst few in ECG universe. Bags Rs12.8 bn orders (YTD 49% of FY12E target). Order book at Rs65.3 bn

n Shares not-encouraging outlook – (1) Pressure on EBITDA margins to continue (2) Subdued order inflows in near-term

n Already factored above concerns in our earnings estimates. Trading at attractive valuations of 11.8X FY13E – but no near term re-rating catalysts. Have Accumulate rating. TP Rs495

Regards,

Pritesh Chheda

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email: pritesh...@emkayglobal.com

Board No. : +91- 22- 6612 1212 | Extn. : 273 | DID : +91-22- 6612 1273 | Mob : +91 98208 07241

Prerna Jhavar
Research Analyst \| Emkay Global Financial Services Ltd. \| www.emkayglobal.com \| Email : prerna...@emkayglobal.com
Board No. : +91-22-6612 1212 \| Extn. : 337 \| DID : 6612 1337 \| Mob : +91981935 0593 \|

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Thermax Q2FY12 Result Update.pdf

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