India's Thermax falls after brokerages cut TP on weak Q1, project cost escalation

Thermax

03/08/2026 08:17

** Thermax shares THMX.NS fall as much as 5.46% to 4,070.80 rupees
** Engineering firm reports 83.4% year-on-year drop in first-quarter profit on July 30 
** J.P. Morgan says results are weak, citing a 910-million-rupee cost-to-completion provision on a single legacy government project as the principal drag
** J.P. Morgan cuts target price to 4,139 rupees from 4,335 rupees, citing expensive valuations; keeps "neutral" rating
** UBS lowers TP to 5,100 rupees from 5,600 rupees; reiterates "buy" 
** Says unexpected cost escalation on the government project driving weakness, may defer growth and margin recovery after the quarterly miss 
** Expects the results to weigh on near-term performance despite management's constructive commentary
** Cuts FY2027–2029 earnings estimates by 18%/10%/8% 
** THMX reversed an intraday loss of 16.1% to close 1.3% higher on Friday, before brokerage commentary over the weekend highlighted near-term pressure
** Average rating of 20 analysts tracking THMX is "hold"; median TP is 4,250 rupees - LSEG data
** THMX up 36.6% in 2026 so far

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))