Thermax advanced further on Tuesday on sustained buying support following the hopes of impressive financial results from the company, as well as huge dividend pay-out for FY 2002-03.
By 12:55 IST, the scrip of the Pune-based engineering company rose by 5.46% to Rs 169.05 on the BSE, recovering from its low of Rs 156.50. A total of 74,677 shares changed hands on the counter. The Thermax scrip has risen by 23.4% to the current level, from Rs 137 on 30 April 2003.
For the fourth quarter ended 31 March 2003, analysts expect the company to record a massive rise in net profit in the range of Rs 30-33 crore on net sales of Rs 190-195 crore (Rs 1.9 billion). For the full year (FY 2002-03), the company is expected to record a net profit of Rs 45-50 crore on net sales of Rs 550-555 crore (Rs 5.5-5.55 billion).
Meanwhile, the rise in the Thermax stock was also on expectations of a bumper dividend from the company. The market expects a dividend in the range of 100-150% (i.e. Rs 10-15 per share having a face value of Rs 10).
Analysts said that with the dividend being made tax-free (in the hands of shareholders), there are hopes of huge dividend from the company. Last year, the company announced a dividend of 50%.
As on 31 March 2003, promoters held 61.98% stake in Thermax, while public and institutions held 19.71% and 14.15% respectively.
Thermax is an established company in the boiler and heater market with a base of over 20,000 installations across industry segments, especially textiles, chemicals, pharmaceuticals, food, edible oils, and paper. The company is now focusing on service and retrofit businesses to capitalise on this installed base.
To beat the sluggish conditions in the domestic market, Thermax is concentrating on the international markets. The company has projected 25% growth from its subsidiaries in the US and UK in fiscal 2002-03. It is also looking at newer international markets such as Russia, South East Asia, Thailand and Malaysia.
In the domestic market, the company plans to revamp the dealer network, cross-sell products and enter the services business to improve the top line. It has also initiated a comprehensive exercise in domestic and global sourcing for optimum purchase efficiency and improvement in supply chain management.
For the third quarter ended 31 December 2002, the company recorded a massive 96.5% rise in net profit to Rs 5.11 crore on a 14.74% increase in net sales to Rs 115.02 crore (Rs 1.15 billion).
BSE code: 500411
More Hot Pursuits
