Poly Medicure Ltd Falls to 52-Week Low of Rs.1372 Amidst Continued Downtrend

Stock Performance and Market Context

The stock has been on a losing streak for four consecutive days, shedding approximately 12.98% during this period. This decline has brought the share price down to Rs.1372, the lowest level recorded in the past year. Poly Medicure is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent bearish momentum.

In contrast, the broader market has shown resilience. The Sensex opened higher at 84,177.51 points, gaining 597.11 points (0.71%) and is trading near 83,959.94 points, up 0.45%. The index is just 2.62% shy of its 52-week high of 86,159.02, supported by a three-week consecutive rise and leadership from mega-cap stocks. Despite this positive market backdrop, Poly Medicure’s share price has underperformed significantly.

Over the last year, Poly Medicure has delivered a negative return of 43.15%, starkly contrasting with the Sensex’s positive 7.86% gain over the same period. The stock’s 52-week high was Rs.2936.7, highlighting the extent of the recent decline.

Financial Metrics and Valuation Insights

Poly Medicure’s financial performance has shown mixed signals. The company reported a quarterly Profit After Tax (PAT) of Rs.75.86 crores for the December 2025 quarter, reflecting an 11.0% decline compared to the previous period. Operating profit to net sales ratio for the quarter stands at 22.52%, one of the lowest levels recorded, signalling margin pressures.

The company’s debtors turnover ratio for the half-year is at 4.02 times, the lowest in recent periods, indicating slower collection efficiency. Despite these challenges, Poly Medicure maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure with minimal leverage.

Return on Equity (ROE) is recorded at 12.4%, while the Price to Book Value ratio is relatively high at 4.8, suggesting an expensive valuation relative to its book value. However, the stock is trading at a discount compared to its peers’ average historical valuations, which may reflect market concerns about growth prospects.

Over the past year, the company’s profits have increased by 11.9%, yet the stock price has declined by 42.62%, resulting in a Price/Earnings to Growth (PEG) ratio of 3.4. This elevated PEG ratio indicates that the market is pricing in slower growth or higher risk relative to earnings growth.

Sector Position and Market Capitalisation

With a market capitalisation of Rs.14,077 crores, Poly Medicure is the second largest company in the healthcare services sector, representing 13.41% of the sector’s total market value. Its annual sales of Rs.1,781.58 crores account for 16.40% of the industry’s revenue, underscoring its significant presence.

Institutional holdings stand at 23.24%, indicating a substantial stake by investors with advanced analytical capabilities. This level of institutional ownership often reflects confidence in the company’s fundamentals despite recent price weakness.

Mojo Score and Analyst Ratings

The company’s Mojo Score currently stands at 28.0, categorised as a Strong Sell. This represents a downgrade from the previous Sell rating, effective from 28 May 2025. The Market Cap Grade is 3, reflecting a mid-tier valuation relative to market capitalisation metrics.

This rating reflects concerns over the company’s long-term growth trajectory, which has seen operating profit grow at an annualised rate of 17.77% over the last five years. While this growth is positive, it has not translated into sustained share price appreciation, as evidenced by the recent price decline and valuation metrics.

Summary of Recent Price Action

Poly Medicure’s share price has been under pressure despite a broadly positive market environment. The stock’s four-day consecutive decline and breach of the 52-week low at Rs.1372 highlight the challenges faced by the company in maintaining investor confidence. The stock’s performance contrasts with the Sensex’s steady gains and proximity to its own 52-week high, underscoring sector-specific or company-specific factors influencing the share price.

Trading below all key moving averages further emphasises the current negative momentum. The stock’s relative underperformance against the BSE500 index, which has generated an 8.47% return over the past year, reinforces the divergence in performance within the broader market.

Conclusion

Poly Medicure Ltd’s fall to a 52-week low of Rs.1372 reflects a combination of subdued financial results, valuation concerns, and market dynamics that have weighed on the stock. Despite its sizeable market capitalisation and significant sector presence, the company’s recent earnings decline and margin pressures have contributed to the current share price weakness. The stock’s trading below all major moving averages and its Strong Sell Mojo Grade indicate ongoing challenges in regaining upward momentum.

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