Thermax Limited shares touched yearly highs on Friday and the stock is looking strong on technical charts. Thermax stock touched 52-week high of Rs 2942 and closed the session at Rs 2922. The heavy electric equipment company has strong fundamentals and Thermax is on radar of many market experts and research houses. The stock has offered decent returns to investors from 52-week low of Rs 1830, touched on December 23, 2022. The current upside move in this counter started on August 18 and we have witnessed one way movement. Thermax operates globally through 33 international offices and 13 manufacturing facilities. Seven Thermax manufacturing plants are in India and six operate overseas.

ShareKhan Research has suggested BUY Call for Thermax with target price of Rs 3235. The research note from ShareKhan suggests, “Thermax has a healthy order book and promising enquiry pipeline particularly for its green energy offerings. Although, near to medium outlook for big-ticket orders from steel, oil and gas, refinery, and petrochemicals continues to be cautiously optimistic. We believe in the long run, Thermax is expected to benefit from India’s transition to green energy given its varied offerings in all its key segments. Further, its opex-based model through its two subsidiaries for wind and solar plants is gaining traction. As per annual report, international opportunities in biomass, waste heat recovery (WHR), and water desalination are increasing and has a robust order pipeline. Thermax focuses on launching innovative products in all its segments, which bodes well for long-term growth.” ShareKhan has recommended BUY Call at Rs 2809 with target price of Rs 3235.

In August research report, ICICI Securities has suggested Accumulate Rating with target price of Rs 2703 (price at recommendation date was Rs 2529). The target has already been met by the stock with its stellar performance.

HDFC Securities has also suggested Accumulate Rating for the stock with target price of Rs 2702. The target has already been achieved.

Thermax currently is at yearly highs and technical analysis may not be the best way to see the stock’s further moves. But, short and medium term investors should be cautious. Long term investors can continue to hold the stock and add whenever there are declines. Thermax has witnessed a strong upside move in the last few weeks and a correction can’t be ruled out. In case Indian markets witness correction, Thermax stock could also correct by nearly 10-15 percent from current levels.

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