The shares of Thermax Ltd. rose as Kotak Institutional Equities said its pressures outside the internal energy sector have removed the risk of the energy transition for the time being.
The speed of acquisition and transcending traditional customers has resulted in a positive view of inventory, Kotak said in a March 21 note. The rush of medium-to-large orders has boosted the order book by 30%, more than the peak the company has seen in the past, it said.
A tight occupancy rate, supported by a strong backlog, reinforces the case for Thermax to increase its bid margin for future orders.
Kotak raised its target price on the stock by 8% to Rs 2,270, implying a 13.4% increase.
Shares of the power-generation equipment maker were up more than 6%, compared with a 0.16% drop in Nifty 50 as of 11:20 a.m. Monday.
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