Thermax shares fall 20% to 52-week low after Q2 results, JM Financial maintains sell
The company reported a net profit of ₹114.54 crore in Q2FY27, down from ₹119.66 crore in Q2FY26.
Thermax shares experienced a significant 20% drop, reaching a 52-week low, in response to its Q2 FY27 results for the fiscal year 2027. The company's net profit for the quarter declined, falling to ₹114.54 crore, down from ₹119.66 crore in the same period of the previous year. Despite a slight increase in revenue to ₹2,755.87 crore, the company's performance was overshadowed by the financial setback.
Thermax has raised its revenue guidance for the second half of FY27 to exceed ₹7,000 crore, a substantial increase from the earlier estimate of ₹3,000 crore per quarter. Management anticipates double-digit revenue growth in both Q3 and Q4 of FY27, buoyed by the successful execution of its existing client base. However, JM Financial maintained its sell rating for Thermax, with a sum-of-the-parts (SotP)-based target price of ₹3,435.
The brokerage's target implies a price-to-earnings multiple of 45 times on H1FY29E estimates, and the company retained its sell recommendation. Notably, Thermax's stock had already fallen by 23% following its Q1FY27 results.
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