Shares of Thermax Ltd. opened the session at ₹3,295.70, marking a 5% rally from Thursday's close and an 8% YTD gain, as Kotak Institutional Equities upgraded the stock to ‘Buy’.
Kotak’s rating shift comes with a ₹4,000 target, valuing Thermax at 35 times its FY2028 earnings—a figure the brokerage deems attractive amid expectations of a 16% compound annual revenue growth over FY2026‑29.
The firm highlights early‑stage businesses—data centres in the US and India and compressed biogas—as potential drivers that could add 5‑6 percentage points to revenue growth, a sector where Thermax holds a strong competitive position.
Margin outlook remains positive: completion of legacy orders and a growing contribution from higher‑margin segments such as power, Babcock & Wilcox Energy Solutions, and services are expected to lift overall profitability.
With 21 analysts covering Thermax, eight hold ‘Buy’, eight ‘Hold’, and five ‘Sell’, the consensus signals a 34.4% upside. Investors will now watch for the company’s next earnings release and any updates on its expansion into the data‑center and biogas markets.
The upgrade and target price suggest a bullish stance for the next quarter, positioning Thermax as a potential high‑growth play amid a broader industrial recovery.