Themis Medicare Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹106.10−₹0.27 (−0.25%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Themis Medicare Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Themis Medicare Limited, together with its subsidiaries, manufactures and sells pharmaceutical products in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees1,340

Annual revenue₹340 Cr

How does it make money?

Turns over ₹340 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 1,340 employees supports ₹25.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -1% while net margin moved -98% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-1%

Margin effect-98%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.4% a year
✗ Profit has declined at 72.8% a year
✗ Latest-year revenue growth of -10.9% is below the longer-term trend — momentum is fading
✗ Profit fell 96.2% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

24.5x

3Y Median

33.8x

40 monthly readings · mean 126.5x · range 20.4x–1039.7x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 33.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 26% below the peer median of 33.3x.

vs. its own history

Cheap

33.8x median over 40 months · -28%

vs. sector peers

Cheap

33.3x median of 4 peers · -26%

vs. generic bands

Fair

15x–35x

EV/EBITDA

49.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.8% to 0.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.5% to 2.5% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 19.9 points, from 26.4% to 6.5%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.7x to 1.2x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹8 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 98% over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 23% against revenue up -1% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 26% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 26.4% to 6.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 23% against revenue up -1%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 16.8% to 0.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹985 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.46x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.33

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

-10.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-96.2%

Falling

Profits are shrinking

Dividend Yield

0.47%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-63.2%

Weak

Thin margins leave little room for error

Net Margin

12.1%

Good

Strong bottom-line conversion

Current Ratio

1.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

114.4 / 116.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

29.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹344 Cr	₹377 Cr	₹400 Cr	₹340 Cr	-0.4%
EBITDA	₹91 Cr	₹73 Cr	₹58 Cr	₹22 Cr	-37.7%
EBITDA Margin	26.4%	19.4%	14.5%	6.5%	—
PAT (Net Profit)	₹57 Cr	₹44 Cr	₹30 Cr	₹1 Cr	-72.8%
EPS	₹6.17	₹4.72	₹3.24	₹0.12	-73.1%
ROE	16.8%	11.5%	7.4%	0.3%	—
ROCE	21.5%	14.8%	11.2%	2.5%	—
Total Debt	₹92 Cr	₹96 Cr	₹83 Cr	₹100 Cr	+2.7%
Free Cash Flow	-₹13 Cr	₹4 Cr	₹19 Cr	-₹8 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.4% a year).

🔴 EBITDA has shrunk at 37.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.4% to 6.5% over 3 years (-19.9 pts).

🔴 PAT (Net Profit) has shrunk at 72.8% a year over 3 years.

🔴 EPS has shrunk at 73.1% a year over 3 years.

🔴 ROE has fallen from 16.8% to 0.3% over 3 years (-16.5 pts).

🔴 ROCE has fallen from 21.5% to 2.5% over 3 years (-19.0 pts).

🔴 Total Debt has grown at 2.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹598 Cr

Total Liabilities

₹199 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

48.4%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 positive2 negative3 general

Themis Medicare Limited (THEMISMED.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Compare THEMIS MEDICARE with

Equitymaster, 15 Oct

Themis Medicare Share Price Outlook: Where It Could Be in 3 Years

Univest, 05 Aug

Themis Medicare Ltd Downgraded to Strong Sell Amid Weak Financials and Technical Setbacks

MarketsMojo, 13 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Themis Medicare Co-Promoter Releases Pledge Of 15 Lakh Shares Or 1.63% On July 8

Sahi, 21 JulOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Themis Medicare Returns to Profit in FY26, Recommends Dividend of Re. 0.50 Per Share

scanx.trade, 28 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-10.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Profitability

WeakBusiness Quality · Growth · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑