Thermax Limited (THERMAX.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-33.4%

₹2,098.30

vs ₹3,150.30 price

Levered DCF

-₹426.11

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

—

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	50.99×	63.02×	74.84×	57.35×	69.93×	73.26×	39.24×	33.04×
P/B	6.62×	8.1×	10.88×	6.67×	6.25×	4.65×	2.75×	3.57×
P/S	3.44×	3.9×	5.23×	3.21×	3.6×	3.21×	1.47×	1.83×
EV / EBITDA	27.98×	35.69×	45.03×	34.6×	39.94×	36.57×	16.45×	20.66×
Gross margin	19.7%	41.1%	41.0%	39.6%	39.6%	42.2%	47.3%	46.4%
Operating margin	8.5%	8.0%	7.4%	6.6%	4.6%	4.6%	5.9%	7.0%
Net margin	6.7%	6.2%	7.0%	5.6%	5.2%	4.4%	3.8%	5.5%
Current ratio	1.22×	1.3×	1.36×	1.38×	1.26×	1.45×	1.43×	1.3×
Debt / equity	0.42×	0.35×	0.29×	0.21×	0.11×	0.1×	0.08×	0.08×
Interest coverage	6.56×	7.88×	9.02×	20.67×	11.05×	10.57×	22.21×	28.69×
Dividend yield	0.4%	0.3%	0.2%	0.4%	0.4%	0.0%	2.3%	0.8%
Payout ratio	21.9%	21.3%	17.5%	22.7%	25.2%	0.0%	89.5%	25.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	13.0%	12.9%	14.5%	11.6%	8.9%	6.4%	7.0%	10.8%
Return on invested capital	8.0%	8.4%	8.5%	8.2%	5.3%	4.4%	5.6%	9.7%
Return on assets	5.4%	5.3%	6.4%	5.1%	4.2%	3.2%	3.6%	4.8%
Free cash flow yield	-1.2%	0.4%	-1.2%	-0.7%	1.1%	4.5%	3.3%	-2.5%
Earnings yield	2.0%	1.6%	1.3%	1.7%	1.4%	1.4%	2.5%	3.0%
Enterprise value	₹379B	₹413B	₹491B	₹262B	₹219.1B	₹150.1B	₹83.3B	₹106.8B
Net debt / EBITDA	0.86×	1.12×	0.74×	0.5×	0.12×	-0.3×	-0.02×	-0.13×
Cash conversion cycle (days)	54	28	52	47	14	22	51	56