Thermax secures orders exceeding Rs. 500 crore giving a glimpse into the future outlook

Thermax, a prominent provider of energy and environmental solutions, is in line with its commitment to being a reliable partner in the transition towards sustainable energy. The company is actively engaged in developing green and decarbonisation solutions aimed at closing the divide between energy accessibility and sustainability.

During the Thermax Fest today, the Thermax Group made crucial announcements related to its vision for the future of the company, aligning with global energy transition objectives. Additionally, the company disclosed a substantial order it recently received, marking a significant milestone.

Order Details

The company has announced that, through one of its subsidiary companies, an energy conglomerate has awarded contracts totalling over Rs 500 crore to Thermax for the establishment of five bio-CNG plants across various regions in India. These plants are slated to be constructed in Rajasthan, Madhya Pradesh, and Maharashtra (2 Plants), along with Uttar Pradesh.

Boasting a combined production capacity of 110 tonnes per day of bio-CNG, these facilities will harness local resources exceeding 1,000 TPD, including rice straw, Napier grass, cane trash, and soya trash. The bio-CNG produced by these plants will be utilised for both commercial and in-house purposes by the client. This endeavour aligns with Thermax’s larger strategy to introduce innovative solutions in the realms of biochemicals and bioenergy.

Future Outlook 

The company has initiated a focus on sustainable energy involves establishing 1 GW of hybrid renewable energy solutions by FY 2027. These projects, spanning across intra-state and inter-state locations, aim to cater to diverse industrial needs, including the provision of uninterrupted, clean electricity around the clock. Within the 290 MWp of commissioned and ongoing projects, our most recent advanced wind and solar bundled captive power project, comprising 100 MW of wind energy and 90 MWp of solar energy, is situated in Thoothukudi, Tamil Nadu.

The power generated is gradually being transmitted at 110 kV. Notably, prominent organizations in the tire, automotive components, petrochemical, and textile industries are among the captive users benefiting from this initiative.

Currently, the company oversees an operational portfolio of 140 MWp, with an additional 145 MWp under construction, more than 300 MW in the developmental phase, and an additional 400 MW in the planning stages.

Furthermore, Thermax aims to develop gasification plants with carbon capture capabilities to process coal ranging from 100 to 500 TPD. Based on fluidized bed coal gasification technology, it has implemented a pilot gasifier project at its factory in Pune in partnership with IIT Delhi, supported by the Department of Science and Technology. This indigenously developed technology converts high-ash Indian coal into value-added fuels. It is particularly beneficial for hard-to-abate industries like the steel sector and aligns with the Prime Minister’s vision of gasifying 100 million tonnes of coal by 2030.

Thermax Stock Performance 

At the start of the day, the Thermax stock commenced trading at Rs 2,684.95 and is currently trading at Rs 2,723.20 per share on the BSE, reflecting a 1.64% increase from the previous day’s closing price of Rs 2,679.20 per share. Furthermore, the stock has yielded a 36% return over the past year and an impressive multibagger return of around 200% over the past three years.

Company Overview 

Thermax Limited provides solutions catering to the energy, environment, and chemical sectors. The company’s diverse portfolio encompasses boilers and heaters, absorption chillers/heat pumps, power plants, solar equipment, air pollution control equipment/systems, water and waste recycle plants, ion exchange resins, performance chemicals, and associated services.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.