Thermax is anticipating strong performance in its industrial products for the second half of FY25, driven by improved realizations in its quarterly results. The company is well-positioned to benefit from medium-term triggers such as the "China plus" strategy and protectionist measures impacting the tyre industry.

The stock valuations appear high, trading at 54 times the estimated earnings for fiscal 2027. However, the company has demonstrated effective cost control and has seen growth in its green energy and chemicals segments. With a solid order book and a promising pipeline of projects, revenue visibility remains reasonable, although the stock rating is currently underweight.

Thermax continues to prioritize maintaining a healthy balance sheet while selectively avoiding high-risk, large-scale power projects.