Themis Medicare Ltd Stock Falls to 52-Week Low of Rs.85 Amidst Continued Downtrend

Recent Price Movement and Market Context

The stock of Themis Medicare Ltd has been on a declining trajectory for the past three consecutive trading sessions, resulting in a cumulative loss of 10.9% over this period. On the day in question, the share price fell by 2.57%, underperforming the Pharmaceuticals & Biotechnology sector by 1.85%. Intraday, the stock reached a low of Rs.85, which represents its lowest level in the past 52 weeks, a stark contrast to its 52-week high of Rs.272.05.

Technical indicators further highlight the bearish momentum, with Themis Medicare currently trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This widespread weakness across multiple timeframes underscores the prevailing negative sentiment surrounding the stock.

Meanwhile, the broader market has also experienced some pressure. The Sensex opened flat but declined by 225.44 points, or 0.32%, closing at 82,981.94. Despite this, the Sensex remains within 3.83% of its 52-week high of 86,159.02. The index has recorded a three-week consecutive fall, losing 3.24% over this period, with the 50-day moving average still positioned above the 200-day moving average, indicating a mixed technical backdrop.

Financial Performance and Profitability Concerns

Themis Medicare’s financial results have been under pressure, contributing to the stock’s weak performance. The company has reported negative results for four consecutive quarters, with the latest quarter’s profit before tax (PBT) excluding other income standing at a loss of Rs.6.69 crore, representing a decline of 152.0% compared to the previous four-quarter average.

Net sales for the latest six-month period amounted to Rs.175.57 crore, reflecting a contraction of 26.85%. Correspondingly, the company posted a net loss after tax (PAT) of Rs.17.84 crore over the same period, also down by 26.85%. These figures highlight a challenging revenue environment and continued erosion of profitability.

Over the last five years, Themis Medicare’s operating profit has declined at an annualised rate of 189.22%, indicating persistent difficulties in generating sustainable earnings growth. This long-term trend has weighed heavily on investor confidence and contributed to the stock’s current valuation challenges.

Valuation and Risk Profile

Themis Medicare’s valuation metrics reflect the risks associated with its current financial position. The stock is rated with a Mojo Score of 17.0 and carries a Mojo Grade of Strong Sell, an upgrade from its previous Sell rating as of 1 February 2025. The company’s market capitalisation grade stands at 3, indicating a relatively modest market size within its sector.

Profitability has deteriorated sharply, with profits falling by 150.9% over the past year, while the stock has generated a negative return of 68.59% during the same timeframe. This underperformance extends beyond the short term, as Themis Medicare has lagged the BSE500 index over the last three years, one year, and three months.

Despite these challenges, the company maintains a relatively low debt burden, with a Debt to EBITDA ratio of 0.86 times, suggesting a reasonable capacity to service its debt obligations. However, the stock’s risk profile remains elevated due to its negative EBITDA and declining sales and earnings.

Notably, domestic mutual funds hold no stake in Themis Medicare, which may reflect a cautious stance given the company’s recent financial trajectory and valuation concerns. This absence of institutional backing is significant given the ability of mutual funds to conduct detailed research and due diligence.

Comparative Market Performance

Over the past year, Themis Medicare’s stock price has declined by 68.59%, in stark contrast to the Sensex’s gain of 7.64% over the same period. This divergence highlights the company’s relative underperformance within the broader market context. The stock’s 52-week high of Rs.272.05 is more than three times its current level, underscoring the extent of the recent decline.

The Pharmaceuticals & Biotechnology sector, while facing some headwinds, has generally outperformed Themis Medicare, which has struggled to maintain competitive positioning and growth momentum.

Summary of Key Metrics

Themis Medicare Ltd’s current stock price of Rs.85 represents a new 52-week low, reflecting a sustained period of decline. The stock’s performance over the last three days has been notably weak, with a cumulative loss of 10.9%. Financial results have shown contraction in sales and persistent losses, with negative EBITDA and declining profitability over recent quarters.

While the company’s debt servicing capability remains adequate, the overall financial health and market valuation present challenges. The absence of domestic mutual fund holdings further emphasises the cautious market stance towards the stock. Themis Medicare’s underperformance relative to the Sensex and its sector peers highlights the difficulties faced in reversing the current downtrend.

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