Themis Medicare is currently in a weak phase both fundamentally and in stock performance, so the “hold vs exit” decision should be taken with a clear view of your risk tolerance and time horizon.

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1. Current snapshot (as of late Dec 2025)

- Current price: ~₹101–102 per share. (economictimes.indiatimes.com)

- 1-year performance: down ~60% in the last 12 months; ~-50% in last 6 months – clear underperformance vs pharma sector. (economictimes.indiatimes.com)

- 52-week range: ₹98 (low) to ₹283.95 (high), so the stock is trading very close to its 52-week low. (economictimes.indiatimes.com)

- Valuation signals: Negative PE (loss-making), PB ~2.3–2.7x, market cap ~₹900–950 crore, ROE and ROCE have recently turned negative. (economictimes.indiatimes.com)

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2. Fundamental trend

Recent quarters show clear deterioration:

- FY24 was still profitable, with revenue growing ~9% YoY but profit falling and margins compressing. (simplywall.st)

- In FY25 and FY26-to-date, multiple quarters have turned loss-making, with:

- Dec 2024: marginal profit.

- Mar 2025: net loss ~₹9.7 crore; sharp margin collapse. (business-standard.com)

- Jun 2025: net loss ~₹14.2 crore; YoY sales down ~21%. (business-standard.com)

- Sep 2025: still loss-making with weaker margins (net loss ~₹3–4 crore). (indmoney.com)

- Trailing metrics now show:

- Negative ROE and ROCE.

- Negative EBITDA in recent quarters, indicating operating stress. (marketsmojo.com)

Balance sheet is not alarming yet (debt–equity ~0.25, reasonable liquidity), but continued losses can start eroding comfort if they persist. (marketsmojo.com)

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3. Key risks you are exposed to if you continue holding

- Earnings risk: Three–four weak quarters already; no clear evidence yet of a strong turnaround in margins or growth.

- Price risk: Stock is near 52-week low after a steep fall; if business weakness continues, there is risk of further downside or prolonged underperformance.

- Small-cap pharma risk: Lower institutional holding and smaller size mean higher volatility and more sensitivity to any negative news. (marketsmojo.com)

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4. How investors typically decide: Hold vs Exit (examples, not advice)

Below are illustrative frameworks commonly used by investors in such situations. You can map your own situation to these.

Example reasons to CONTINUE HOLDING (or hold with a strict plan)

Investors often continue to hold (sometimes with a predefined stop-loss or time limit) if:

1. High risk tolerance & long horizon (3–5+ years)

- Small-cap pharma is accepted as a high-volatility bet.

- Short-term losses are tolerated if they believe the product pipeline and industry structure will support a turnaround.

2. Small allocation in overall portfolio

- Example: Exposure to this stock is <3–5% of the total equity portfolio, so even a further drawdown is manageable.

3. Belief in a turnaround story

- They see specific triggers: cost rationalisation, new product approvals, export scale-up, or clear management commentary on fixing margins, and are willing to wait 2–3 more results.

4. No near-term cash requirement

- They don’t need this capital for 2–3+ years and prefer to avoid booking losses at depressed levels, provided fundamentals don’t worsen further.

Example reasons to REDUCE / EXIT

Investors often choose to pare down or exit when:

1. Allocation and risk have become uncomfortable

- The stock is a large part of their portfolio (for example >8–10% of equity holdings), and they want to de-risk from a loss-making, volatile small-cap.

2. Conviction has weakened due to fundamentals

- Multiple consecutive weak quarters, negative ROE/ROCE, and sector underperformance with no strong turnaround signals lead to loss of confidence.

3. Better opportunities or tax management

- They see stronger, more consistent pharma or other sector names and prefer to switch.

- Some use the fall for tax-loss harvesting (booking loss to offset gains elsewhere) and then redeploy into higher-quality stocks.

4. Short to medium time horizon

- If they need money within the next 12–24 months, many prefer not to stay in a stock that is still in an earnings down-cycle.

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5. Practical risk-management approach (general guidelines)

These are general practices, not recommendations:

- Define a maximum loss / exit level for yourself based on your risk capacity, not just the 52-week low.

- Cap position size: Many investors keep single small-cap pharma names within a small slice of their total portfolio so that any extreme outcome doesn’t damage overall finances.

- Watch the next 2–3 quarters very closely:

- Are sales stabilising or recovering?

- Are EBITDA margins improving towards previous levels?

- Is debt staying under control?

- If results continue to be loss-making or deteriorate further, many investors choose to gradually exit, even at a loss, to protect capital and reallocate to stronger names.

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Conclusion

- Themis Medicare is currently a high-risk, weak-momentum, and fundamentally stressed small-cap pharma stock.

- Continuing to hold is essentially a turnaround bet and suits only investors with:

- High risk tolerance,

- Long time horizon, and

- Limited portfolio allocation to this name.

- Investors with low–moderate risk appetite, high portfolio exposure to this stock, or near-term cash needs often prefer to reduce or exit in such situations and shift to financially stronger, more consistent companies.

CNI InfoXchange cannot provide personalised buy/hold/sell advice without a full understanding of your risk profile, investment horizon, and portfolio. The above is a framework to help you think through your own decision.

If you have any further queries, please connect with us on 022-6290-10141 (Timings : 09.00 AM to 05.00 PM) or you can email us on info@cniinfoxchange.com