Kotak maintains ‘add’ on Thermax; here’s why

Kotak Institutional Equities maintain an ‘add’ on Thermax while also increasing its fair value or price target at this point at around Rs 2,270 increased by around 8 percent.

Several reasons here. One, a flurry of mid to large orders that have added as much as 30 percent to the order book; importantly, the fair value is also now factoring in volume benefits from the company's entry into the SRU EPC space through its USD 150 million order.

There's also tight capacity utilization yielding strong order backlog boosts. In fact, they are expecting its order backlog to be well over Rs 8,000 crore by the end of this year.