Analysts' Pic: Thermax

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Thermax
CMP: Rs 482.30
Target Price: Rs 540

Kotak Securities has assigned an 'accumulate' rating to Thermax, saying recent orders will drive the company's revenue growth in FY10.

"The company is witnessing robust order inflows from steel and sponge iron makers. Thermax has also expanded its pre-qualifications in refineries. The company indicated that orders have been trickling in from sugar distilleries and the polyester sector," the Kotak note to clients said.

The brokerage has raised its FY10 revenue, EBITDA and net profit forecast for the company by 10% each.

"Thermax is currently trading at 17.9 times and 14 times FY09 and FY10 earnings, respectively," the note added, cautioning that near-term growth was likely to be subdued.