Thermax gets close to a new high

Thermax, today morning went up to Rs.1069, a rise of almost Rs.30 over Friday’s close of Rs.1040 but more significantly, it was so close to its 52-week scaled on 25th April of Rs.1070.85.

The good news from the company is that it has won an export contract from a leading African conglomerate to supply 4 utility boilers, 8 heat recovery steam generators and 2 flue gas steam generators for its refinery and petrochemical project coming up in Nigeria.

The scope of supply covers design, engineering, procurement, manufacturing and testing, and supervision of commissioning of these equipments at the site.

The order is valued at $157 million.

Thermax enjoys very high investor fancy thus even the smallest of good news spikes up the price and vice versa. Now we hope that these orders start translating into a good financial performance. It had ended Q3FY17 with a 21% (YoY) drop in total income and 16% fall in net profit at Rs.57 crore.