Shares of Thermax and Info Edge gained on Friday after Kotak Institutional Equities upgraded both to 'Buy'. Analysts set target prices of ₹4,000 for Thermax and ₹1,400 for Info Edge, citing strong growth potential in new energy sectors for the former and digital platform resilience for the latter. The upgrades highlight investor confidence in these companies' long-term growth strategies.
Kotak Institutional Equities has upgraded both Thermax and Info Edge (India) to 'Buy' ratings, reflecting a positive outlook on their growth strategies. Following the announcement on Friday, investors showed interest, with shares of both companies moving higher on the National Stock Exchange. The brokerage's move signals a shift in perspective, focusing on the companies' ability to capture new market opportunities despite the broader economic environment.
For Thermax, the brokerage set a target price of ₹4,000. Analysts expect the company to achieve a 16% compound annual growth rate in revenue between the 2026 and 2029 fiscal years. A major driver of this optimism is the company's strategic move into emerging business lines. Thermax is expanding its footprint in data center infrastructure—an area seeing strong demand in both India and the United States—as well as the compressed biogas and hydrogen sectors. These new areas are projected to contribute an additional 5-6 percentage points to the company's total revenue growth. For investors, the success of this strategy will rely on the company’s ability to execute these large projects without delays or significant cost increases.
Info Edge received a target price of ₹1,400 from Kotak. The brokerage expressed confidence in the company's core segments despite some temporary hurdles. Although the recruitment business saw a slight impact from renewal deferrals in the second quarter of fiscal 2027, the overall billings growth trajectory for the year remains steady at 14-15%. A standout performer in the portfolio is the 99acres real estate platform, which reported a 21.2% jump in billings. This indicates that the company is successfully capturing more demand in the property market. As the company continues to spend on growing these platforms, keeping a close eye on profitability margins will be important.
While the outlook from the brokerage is positive, it is important for investors to consider the inherent business risks. For Thermax, balancing its traditional engineering order book with these new energy projects is a complex task, and profit margins could come under pressure if input costs are not managed well. Similarly, Info Edge is deeply tied to the health of the economy; any slowdown in corporate hiring or a cooling real estate market could affect growth. The next important updates for shareholders will be the execution speed of Thermax's new energy projects and whether Info Edge can maintain its momentum in recruitment and real estate billings in the upcoming quarterly results.