Themis Medicare Ltd Stock Falls to 52-Week Low Amid Continued Downtrend

Recent Price Movement and Market Context

The stock recorded an intraday low of Rs.93.15, representing a 5.43% drop on the day and underperforming its sector by 2.91%. This marks the third consecutive day of losses, with the stock declining by 11.57% over this period. The current price is substantially below its 52-week high of Rs.272.05, reflecting a steep depreciation of 65.7% from that peak.

Themis Medicare is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum. This contrasts with the broader market, where the Sensex, despite a recent fall of 499.76 points (-0.77%) to 82,935.55, remains only 3.89% below its 52-week high of 86,159.02. The Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, suggesting mixed signals for the broader market.

Financial Performance and Profitability Concerns

Themis Medicare’s financial metrics reveal ongoing difficulties. The company has reported negative results for four consecutive quarters, with Profit Before Tax excluding Other Income (PBT LESS OI) at Rs. -6.69 crores, a decline of 152.0% compared to the previous four-quarter average. Similarly, the 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%, underscoring challenges in generating returns from capital invested. The company’s operating profit has contracted sharply, with an annualised decline rate of 189.22% over the last five years, reflecting sustained pressure on core earnings.

Valuation and Risk Profile

The stock’s Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell, upgraded from Sell as of 1 February 2025. This reflects a deteriorated outlook based on comprehensive financial and market data. The Market Cap Grade is 3, indicating a relatively modest market capitalisation compared to peers.

Over the past year, Themis Medicare has delivered a negative return of 63.99%, significantly underperforming the Sensex, which gained 7.17% over the same period. The company’s profits have fallen by 150.9% in the last year, highlighting the scale of financial contraction. Despite its size, domestic mutual funds hold no stake in the company, which may indicate limited institutional confidence at current valuations.

Debt and Liquidity Considerations

On a positive note, Themis Medicare maintains a relatively low Debt to EBITDA ratio of 0.86 times, suggesting a manageable debt burden and a reasonable capacity to service its liabilities. This metric provides some cushion amid the broader financial challenges faced by the company.

Long-Term and Recent Performance Trends

The stock’s underperformance extends beyond the last year. It has lagged the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in delivering shareholder value. The downward trajectory in share price and financial results has been consistent, with no recent quarters showing a reversal in trend.

Summary of Key Metrics

Themis Medicare’s current share price of Rs.93.15 is a reflection of ongoing financial pressures and market sentiment. The stock’s decline to a 52-week low, combined with negative quarterly results, low profitability ratios, and a Strong Sell Mojo Grade, underscores the challenges faced by the company in the Pharmaceuticals & Biotechnology sector.

While the company’s debt levels remain manageable, the steep decline in operating profit and net earnings over recent years has weighed heavily on investor confidence and share price performance. The absence of domestic mutual fund holdings further highlights the cautious stance of institutional investors.

Market Environment

The broader market backdrop has been mixed, with the Sensex experiencing a modest decline but remaining near its 52-week high. Themis Medicare’s underperformance relative to both its sector and the benchmark index emphasises the specific difficulties confronting the company amid a generally resilient market environment.

Conclusion

Themis Medicare Ltd’s fall to a new 52-week low of Rs.93.15 marks a significant milestone in its recent share price trajectory. The combination of sustained negative earnings, declining profitability, and subdued market interest has contributed to this outcome. The company’s financial indicators and market metrics provide a comprehensive picture of the challenges it currently faces within the Pharmaceuticals & Biotechnology sector.

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