Themis Medicare Ltd Falls to 52-Week Low of Rs.76 Amid Continued Financial Struggles

Recent Price Movement and Market Context

The stock recorded an intraday low of Rs.76, representing a 3.6% decline on the day and extending its losing streak to two consecutive sessions. Over this period, Themis Medicare has delivered a cumulative negative return of 4.68%. This underperformance is notable against the backdrop of the Pharmaceuticals & Biotechnology sector, which outpaced Themis Medicare by 1.54% today. The broader market, represented by the Sensex, rebounded sharply after a negative start, closing 0.52% higher at 81,141.59 points.

Despite the Sensex's recovery, Themis Medicare remains under pressure, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment surrounding the stock.

Long-Term Performance and Valuation Metrics

Over the past year, Themis Medicare has experienced a steep decline of 66.05%, a stark contrast to the Sensex's positive return of 4.69% during the same period. The stock’s 52-week high was Rs.255, highlighting the magnitude of the recent downturn. This prolonged depreciation reflects ongoing challenges in the company’s financial performance and market perception.

The company’s market capitalisation grade stands at a low 3, indicating limited market confidence relative to peers. The Mojo Score, a composite measure of stock quality and momentum, is currently 17.0 with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 1 February 2025. This grading reflects deteriorating fundamentals and heightened risk factors.

Financial Performance Trends

Themis Medicare’s financial results have shown a consistent negative trajectory over recent quarters. The company has reported losses for four consecutive quarters, with Profit Before Tax (PBT) excluding other income at Rs. -6.69 crores, representing a 152.0% decline compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) for the quarter stood at Rs. -3.62 crores, down 59.6% relative to the prior four-quarter average.

Return on Capital Employed (ROCE) for the half-year period is at a low of -3.47%, signalling subdued capital efficiency. The company’s EBITDA remains negative, contributing to the perception of elevated risk in its earnings profile. Over the last five years, operating profit has contracted at an annualised rate of -189.22%, underscoring the challenges in sustaining growth.

Valuation and Risk Considerations

The stock is currently trading at valuations that are considered risky when compared to its historical averages. The significant decline in profits, down 150.9% over the past year, has not been matched by any corresponding improvement in market sentiment or valuation multiples. This disconnect has contributed to the stock’s steep price fall.

Notably, domestic mutual funds hold no stake in Themis Medicare, which may reflect a cautious stance given the company’s recent financial performance and valuation concerns. The absence of institutional backing is a relevant factor in assessing market confidence.

Sector and Market Comparison

In comparison to the broader Pharmaceuticals & Biotechnology sector, Themis Medicare’s performance has been below par both in the near and long term. The stock has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent relative weakness. Meanwhile, the sector has shown resilience, supported by mega-cap stocks leading the market gains.

Balance Sheet and Debt Metrics

On a positive note, Themis Medicare maintains a relatively strong ability to service its debt obligations. The company’s Debt to EBITDA ratio stands at a modest 0.86 times, suggesting manageable leverage levels. This metric provides some cushion against financial distress despite the ongoing earnings challenges.

Summary of Key Metrics

Themis Medicare Ltd’s current market environment is characterised by a 52-week low price of Rs.76, a Mojo Grade of Strong Sell, and a market cap grade of 3. The stock’s recent two-day decline of 4.68% and underperformance relative to sector and benchmark indices reflect ongoing pressures. Financial indicators such as negative EBITDA, declining PBT and PAT, and a negative ROCE highlight the challenges faced by the company. However, the manageable debt level provides some stability in capital structure.

While the stock’s valuation and performance metrics indicate a cautious outlook, the company’s ability to service debt remains a notable factor in its financial profile.

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