Don't read too much into Thermax's rally

Stock outperforms BSE capital goods index over past 3 months, leaving behind fundamentals

Even as capital goods stocks find favour with investors, Thermax seems an exception. If 56 per cent of analysts polled on Bloomberg were sellers on Thermax two years ago, 74 per cent suggest disposal today. What's more, the 33 per cent rise in Thermax stock this year is not backed up by an improvement in fundamentals. Even the overseas acquisition of a boiler manufacturer, which pumped up the stock by about eight per cent on Thursday, is just a sentiment boost, say analysts, as the acquisition may take time to reflect in the financials. 

There are key reasons analysts aren't