Neutral on Thermax, target price Rs 757: Motilal Oswal

Motilal Oswal has given a neutral rating to Thermax with a target price of Rs 757. The share price moved down by -0.85 per cent from its previous close of Rs 751.90. The last traded price is Rs 745.50.

According to the brokerage, 4QFY20 revenues declined 36 per cent to Rs 13.2 billion and were 23 per cent below its expectation. On account of lower absorption of fixed costs like employee costs, EBITDA declined 63 per cent to Rs 636 million and missed brokerage expectations by 53 per cent. Adjusted PAT declined 69 per cent to Rs 390 million and was 63 per cent below expectation. For FY20, revenue/EBITDA/adj. PAT declined 4 per cent/11 per cent/30 per cent.