Stock update: Thermax

Stock update: Thermax

Thermax has bagged an order worth Rs1,001 crore for the turnkey supply of a 270MW power plant being set up by a Hyderabad-based infrastructure company.

The boilers for this project will be manufactured by Thermax using the Circulating Fluidised Bed Combustion (CFBC) technology licensed from Babcock & Wilcox, US.

Besides, the company would also supply the air pollution control, water treatment and effluent treatment systems for the project.

We believe that company’s success into the utility boilers space could very well turn out to be a key milestone, imparting greater revenue visibility and reducing high cyclicality associated with its earnings. We maintain ACCUMULATE on the stock.