Thermax's stock rises 5% after subsidiary gets work order worth Rs 513 cr

Thermax shares zoomed 4.6 per cent at 5287.10 per share on the BSE in Friday’s intraday trade after the company informed the bourses that it has bagged a big work order worth Rs 513 crore.

Thermax Babcock & Wilcox Energy Solutions Limited (TBWES), a wholly owned subsidiary of Thermax concluded an order of Rs. 513 crore from Jindal Energy Botswana to set up a 600 mega watt greenfield energy project in Botswana, Southern Africa.

“TBWES will supply two 550 TPH CFBC (circulating fluidised bed combustion) boilers over a period of 23 months. This order will support the development of the first phase i.e. the 300 MW power station being established by the customer,” the company said in an exchange filing on Friday.

The power generated is intended for sale to the national utility power company for sustaining

the growing power requirement of the country, the company said.

Thermax, a key player in industrial machinery, reported a consolidated net profit of Rs 1.88 billion ($22.5 million) for the quarter ended March 31, 2023-24, marking a 20.5 per cent increase from the same quarter in previous fiscal. 

At 12:43 PM; the stock of the company was trading 2.87  per cent higher at Rs 5439 per share on the BSE. In comparison the BSE Sensex fell 0.25 per cent to 79,849 levels.

At present, the shares of the company are trading at a price to earnings multiple of 144.02 times with an earning per share of Rs 36.71.

Thermax is present in the energy and environment space. It operates 14 manufacturing facilities across India, Europe, and Southeast Asia and has 42 Indian and international subsidiaries