Credit Suisse has upgraded Thermax to 'outperform' from 'neutral', raising the target price to Rs 1,800 from Rs 1,300.
Credit Suisse believes that the company has shared a very strong commentary as far as the domestic demand is concerned and that suggests that the whole cycle is moving on a higher gear, that is showing up in the order flow as well. The domestic order flow is quite strong for Thermax; the firm is upbeat on the stock on the back of its order inflow of Rs 18.6 billion boosted by the domestic inflow of Rs 15 billion.
Credit Suisse believes that while Thermax can participate in this cycle on a relatively lower basis, as compared to ABB and Siemens but it can still drive the earnings traction, going forward. Hence the big upgrade on Thermax with a target price of Rs 1,800.
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