Thursday, 30 October 2008

Accumulate Thermax, target of Rs 316: Emkay Global

Emkay Global Financial Services has downgraded its rating on Thermax from buy to accumulate with a target of Rs 316 in its October 29, 2008 research report ."Thermax reported disappointing results for Q2FY09 – standalone revenues grew by meagre 4% yoy to Rs 8.0 billion owing to 9% yoy decline in revenues of Energy Segment to Rs 5.8 billion. Net profit declined 18% yoy to Rs 570 million, below estimates attributed to FX Loss of Rs 374 million."

"Consequently, earnings estimates are revised downwards by 14% and 13% for FY09E and FY10E due to (1) Lack-lustre performance of Energy Segment in H1FY09 and (2) Rising risks in external environment with an ability to affect future order inflows. We downgrade our rating to ACCUMULATE with revised price target of Rs 316 – valuing Thermax at 10X FY10E," says Emkay Global Financial Services' research report.

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Source: Moneycontrol

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