Themis Medicare Downgraded to 'Sell' by MarketsMOJO

Themis Medicare, a smallcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO on December 5th, 2023. This decision was based on several factors, including the company's high debt to EBITDA ratio of 7.47 times, indicating a low ability to service debt. Additionally, the company has shown poor long-term growth with a 12.87% annual growth rate in net sales over the last 5 years.
In September 2023, Themis Medicare declared negative results after 1 consecutive positive quarters, with its operating cash flow at its lowest at Rs 16.09 crore. Its PBT less OI(Q) at Rs 11.52 crore has also fallen by -25.0%, and its PAT(Q) at Rs 11.32 crore has fallen by -21.5%. With a ROCE of 11.1, the company's valuation is considered very expensive with a 4.1 enterprise value to capital employed.

Despite generating a return of 61.77% in the past year, the company's profits have fallen by -11%. This is a concerning trend, especially considering that domestic mutual funds hold only 0% of the company's shares. This could indicate that they are not comfortable with the company's current price or its business.

On a positive note, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. The company has also consistently outperformed the BSE 500 index in the last 3 annual periods, showcasing its ability to generate returns for investors.

In conclusion, while Themis Medicare may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and the company's concerning financials should be taken into consideration before making any investment decisions.