Thermax reports new order; stock shows resilience to volatility
The shares of Thermax Ltd showed resilience to the negative sentiment of the market on account of new order winning by the company. It won an order worth Rs 320 crore for its captive combined heat & power plant.
The heat-generating power plant forms 78 per cent of the total revenue of the company. In an exchange filing, the group has concluded that in this particular order, the company will have a scope to set up a captive combined heat & power (CHP) plant. This EPC project for Assam Bio-Refinery Private Limited (ABRPL), is a joint venture of Numaligarh Refinery Limited (NRL), Fortum & Chempolis.
The stock price took this development with positive sentiment. As per the last reported order balance status of the company, there was a decline of more than 50 per cent YoY in new order bookings, for the first quarter. The company had earlier stated that the majority of its orders are from the metal & steel sector, pharma, chemical, and food & beverage.
Importantly, the stock has recovered by just 14 per cent since the historic fall in March 2020. The pick-up in business activities would certainly help the stock price to accelerate northwards.