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Thermax Limited (THERMAX) Fair Value & Analysis

Industrials · IN · Market cap ₹542B

TL Thermax Limited THERMAX · NSE
Price₹4,060
Fair Value₹1,087
Upside-73.2%
Quality45/100
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Expensive Growth
Thin margins · 6.7% net margin
Low debt · negative free cash flow
0.30% dividend yield
Trails peers (5/13)
Moderate moat 46/100
Evidence: High Range ₹815.49 – ₹1,359 Share as image

Fair value as of: Jul 13, 2026

From 8 valuation models · updated 27 days ago

Share price −11.7% over the past month.

Below-average quality, and screening another 73% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹1,359). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹5,618 ₹1,286 Fair Value ₹1,087 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range ₹1,286 – ₹5,618 · fair‑value band ₹815.49 – ₹1,359 · the ₹4,060 price screens above the ₹1,087 fair value. Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Thermax Limited (THERMAX) currently trades at ₹4,060, while our model-based Fair Value estimate is ₹1,087, implying the stock looks roughly 73.2% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Thermax Limited generated revenue of ₹107B at a net margin of 6.7%. Revenue grew 11.1% year over year. It earns a return on equity of 13.7%. Net debt stands at ₹11.6B. Fundamentals as of Jul 13, 2026

Our scenario range runs from ₹815.49 (bear case) to ₹1,359 (bull case); at ₹4,060, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 20% below its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at -73%, THERMAX screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹475.30 ₹598.58 ₹1,496 76
Gordon GGM ₹134.65 ₹293.97 ₹494.61 70
P/E Multiple ₹1,007 ₹1,343 ₹1,679 63
All 8 models by family
Earnings-Based
Graham-Dodd ₹434.93 ₹1,442 ₹1,930 54
Lynch FV ₹325.94 ₹465.63 ₹605.32 50
Dividend Discount
Gordon GGM ₹134.65 ₹293.97 ₹494.61 70
DDM Multi-Stage ₹134.65 ₹233.77 ₹306.36 61
Multiples
P/E Multiple ₹1,007 ₹1,343 ₹1,679 63
P/B Multiple ₹815.49 ₹1,087 ₹1,359 55
Asset-Based
NCAV (Graham) ₹246.34 ₹330.10 ₹492.68 50
Economic Profit
Residual Income ₹475.30 ₹598.58 ₹1,496 76

Widest divergence: Multiples (₹1,087) versus Dividend Discount (₹233.77). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹107B
Revenue growth (YoY) +11.1%
Net margin 6.7%
Return on equity 13.7%
Free cash flow −₹4.4B FY2026
P/E ratio 75.8
More key figures
Operating margin 9.3%
EPS (TTM) ₹63.78
Dividend yield 0.3%
EPS growth (YoY) +18.7%
Net debt ₹11.6B FY2026

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 45 · Market factors (momentum, volatility) 64

Profitability 44
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 42
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Thermax Limited provides energy, environmental, and chemical solutions in India and internationally. It operates in Industrial Products, Industrial Infra, Green Solutions, and Chemical segments.

Full company description

Thermax Limited provides energy, environmental, and chemical solutions in India and internationally. It operates in Industrial Products, Industrial Infra, Green Solutions, and Chemical segments. The Industrial Products segment offers manufacturing, installation, sales and services related to boilers and heating equipment, absorption chillers/heat pumps, air pollution control equipment/ systems, water & waste recycling, including associated services and engineering, procurement and construction. The Industrial Infra segment provides engineering, procurement, and construction (EPC) of power plants, infra projects, and flue gas desulphurisation projects, along with associated services and manufacturing, installation, sales and services related to boiler and heater plants. The Green solutions segment builds, owns and operates BOO models, energy management solutions, oil and gas-fired, green hydrogen projects and renewable energy (Solar/Wind). The Chemical segment offers manufacturing, installation, sales and services related to ion exchange resins, performance chemicals, construction chemicals, water treatment chemicals, oil field chemicals, paper and construction chemicals, and related services. It also operates cogeneration, waste heat recovery power, captive power, and independent power plants, as well as offers operation and maintenance services. In addition, the company offers steam boilers; waste heat recovery units; fired heaters and process furnaces; thermic fluid, hot air, and hot water heaters; and waste heat recovery. It serves automobiles, cement, chemicals and fertilizers, commercial/construction, dairy, distillery, paper and pulp, pharmaceuticals, plywood, power generation, food, refineries and petrochemicals, soft beverages, metals, sugar, textiles, and tyre industries. Thermax Limited was incorporated in 1966 and is headquartered in Pune, India. Thermax Limited is a subsidiary of RDA Holdings Private Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Thermax Limited reported revenue of ₹107B in FY2026 versus ₹60.6B in FY2022, a compound +15.2%/yr. Reported net income was ₹7.2B in FY2026, compounding +23.2%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹107B
Latest YoY
+4.3%
Avg. growth/yr (3Y)
+10.0%
Avg. growth/yr (5Y)
+17.8%
Avg. growth/yr (21Y)
+10.6%
Revenue +15.2%/yr
FY22 ₹60.6B
FY23 ₹80.3B
FY24 ₹92.4B
FY25 ₹103B
FY26 ₹107B
Net income +23.2%/yr
FY22 ₹3.1B
FY23 ₹4.5B
FY24 ₹6.5B
FY25 ₹6.3B
FY26 ₹7.2B

THERMAX screens 73% overvalued. Compare with CITIC Limited →

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Cite: Fair Value Calculator (2026). "Thermax Limited Fair Value". https://www.fairvalue-calculator.com/stock/THERMAX

Peer Group

Conglomerates · 370 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median
Fair Value upside −73% · Bottom 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.29× · Higher than median

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 75.2× · Pricier than 75% of peers
P/B 9.76× · Pricier than 75% of peers
P/S (TTM) 5.07× · Pricier than 75% of peers
EV/EBITDA 53.2× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 21
FUTURE 56 · sector 16
PAST 55 · sector 20
HEALTH 85 · sector 88
DIVIDEND 6 · sector 39

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
CITIC Limited 0267 HK$11.28 HK$22.56 +100%
Swire Pacific Limited 0019 HK$99.50 HK$16.77 -83%
SK Inc 034730 580,000 KRW 497,919 KRW -14%
PT Astra International Tbk, ASII 4,810 IDR 9,620 IDR +100%
Grupo Carso, S.A. GCARSOA1 127.02 MXN 66.21 MXN -48%
The Siam Cement Public Company SCC 254.00 THB 199.40 THB -21%
SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%

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Frequently asked questions

Is Thermax Limited (THERMAX) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of ₹1,087 versus a price of ₹4,060, about −73% (overvalued).
What is the fair value of THERMAX?
Our model-based fair value for Thermax Limited is ₹1,087 (as of Jul 13, 2026), built from audited fundamentals. The current price is ₹4,060.
What is the quality score of THERMAX?
Thermax Limited has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Thermax Limited (THERMAX)?
Thermax Limited reported trailing-twelve-month revenue of about ₹107B (latest available figure, as of Jul 13, 2026).
What is the net profit margin of THERMAX?
The net profit margin of Thermax Limited is about 6.7%, meaning it keeps roughly 6.7% of revenue as net income. Based on the latest reported figures.
Does Thermax Limited pay a dividend?
Thermax Limited currently shows a dividend yield of about 0.29% relative to its recent price (as of Jul 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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