Is thermax ltd a sound fundametal buy ?

Anonymous's picture

 #

Thermax Ltd

Business

Thermax is an energy and environment
engineering company. What does that mean to a common investors ? Well if a new cement plant , steel plant, or any other manufacturing unit setup today. They need to go to thermax for building boilers, air pollution control equipment, water treatment , cooling plant etc. As corporate india become more and more environment aware Theremax will have more demand for its equipment and plants. Offie buildings and residential complex uses water treatment plant to recycle water, thermax built those plants for them. There are other companies out there who does the same but thermax is leader in them.I think India still has to go long way as far as waster water management and waster management is concerned and Theramx has huge potential.

Finances

Thermax Limited,

Fiscal 2008-09 sales of  Rs. 3303 Crore.

Profit
after tax for 2008-09 Rs. 287 crore

Earning per share Rs. 24.25 .

Company paid dividend of Rs 5 per share.

Buy Sell or Hold

I would recommend buying thermax for long term. Thermax will be L&T in long term. At current market price of Rs 400 stock is discounting future growth. Hence I will look for some correction before getting into this stock. But certainly this deserves a position in a portfolio for 2013.

 

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