Shares of Thermax Ltd. gained as much as 5% on Friday, October 9, after brokerage firm Kotak Institutional Equities upgraded the stock to ‘Buy’, citing attractive valuations and growth opportunities across its businesses.
The brokerage raised its rating from the previous level to ‘Buy’ and set a price target of ₹4,000 per share, implying an upside of around 15% from Thursday’s closing price.
Kotak said Thermax is trading at 35 times its estimated FY2028 earnings, a valuation it considers attractive given its expectation of a 16% compound annual growth rate (CAGR) in revenue over FY2026-29.
The brokerage expects businesses in the early stages of development to add 5-6 percentage points to revenue growth. These include data centres in the US and India, as well as compressed biogas, where Thermax has a strong competitive position and market opportunities are expanding.
The margin outlook is also favourable, supported by the completion of legacy orders and a rising contribution from higher-margin businesses, including power, Thermax Babcock & Wilcox Energy Solutions (TBWES) and services.
Of the 21 analysts covering Thermax, eight each have a ‘Buy’ and a ‘Hold’ rating, while five have a ‘Sell’ recommendation. The analyst consensus indicates an upside potential of 34.4%.
Shares of Thermax were trading 5% higher at ₹3,295.70 on Friday. The stock has gained around 8% so far in 2026.
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