Saturday, September 8, 2012

THEMIS MEDICARE - Efforts Will Pay - Off


ThemisMedicare is a Mumbai based pharma manufacturer jointly promoted by Indian promoters and Hungary based Gedeon Richter Plc.Gedeon Richter is one of the largest and oldest pharma maker in Hungary started its operation in 1901.Themis is a manufacturer of Active Pharmaceutical Ingredients and Formulation from its three  production facilities located in Vapi, Hyderabad and Haridwar .Company is mainly concentrating in cholesterol lowering drugs,Anti Malarials ,Anti Infectives and Anti Tuberculotics.Themis set up a good marketing network in India with more than 2000 stockists across the country.Company also exporting its products to more than 50 countries across the globe.This year its share price crashed to Rs.67/- from a high of Rs.330 posted in 2010. Reason for this sharp correction is a pathetic financial performance in last year.In last FY ,company posted dismal performance both at  top and bottom line with a net loss of Rs.34 Cr.Main reason for the sharp decline in sales and sharp increase in loss is mainly due to the problems associated with a supply disruption to its major customer and a loose debt based sales policy by the company.But now company realised the seriousness of the situation and took many corrective steps . Production to the mentioned supplier re-started during the end of 2011 and company moved to a realistic credit system .Themis also  introduced stringent  cost control measures ,upgrading  its two manufacturing facilities and introduced better inventory control systems.All this efforts started to pay off  from the first quarter of this FY itself where Themis posted a 75 % increase in Sales and its PBDT turned to black  from a huge loss of Rs.16 Cr last year same period.I believe company is in the right track and in next few quarters it will turnaround even in NP level.Recently promoters hiked their stake through open market purchases and also took warrants to be converted into shares @ Rs.85/-.At present promoters holding around 70 % stake and another 7.5% by MF's and corporate entities .  Those with high risk appetite and enough patience can consider it at CMP of Rs.94/-


27 comments :

  1. Dear ValuePick,

    Thanks a lot for valuable recommendations

    Please let us know your opinion on old recommendation Net4India. can i buy it for long term

    Venkat

    ReplyDelete
    Replies
    1. Not comfortable due to aggressive pledging.

      Delete
  2. VP,
    A small suggestion. Since you have man followers including me can you please list suggestons on BUY/HOLD/SELL. For e.g. Granules, Sabero have moved up and many including me are not sure to book partial profit or hold. Small investors buy the stock but after that a small guidance can go long way. We hardly get stocks which move up so fast and don't want to book out fast.
    If Granules corrects and you do see value to add further we can do so if you can list B/H/S and many will stop asking you such basic questions too.

    A reader of your blog since long and benefited from you stock pick.

    Excellent work and kudos to you on behalf of all of us. CONGRATS.

    ReplyDelete
    Replies
    1. It is practically very difficult when the no .of cos are increasing .So do some home work and take a decision based on own risk profile.

      Delete
  3. Hi Sir ,
    how about Haldyn Glass Ltd . It looks impressive . recently was selected in Forbes 200 list

    ReplyDelete
    Replies
    1. Even Glodyne was on the Forbes 200 list. So that should tell you the importance of that list. I am not recommending anything in particular, but you should consider the fact that Haldyn recently had a fraud of 16 Cr in their March qtr. On top of that the Shetty family seems to be leeching money off the company. They recently gave themselves a raise for the increase in turnover, despite there being no increase in capacity.

      Delete
    2. Rahul thanks a lot and valuepick sir Thanks for publishing this comment.

      Rahul,
      Just curious to know the source of your information.

      Delete
  4. just tell me that who you are. why are you in disguise.
    and i guess that you are either Mr.Porinjv V Veliyathi or someone close to him

    ReplyDelete
  5. Hi,

    As per one of the interview by Dinesh Patel, their business is cyclic in nature with Q1 & Q2 being very good. Even when they are in the good cycle, in Q1 their result is not that good (just only in black). I under its a long term investment, but dont you think we will get better opportunity to buy the stock after off season in Q3 & Q4 for long term investment.

    ReplyDelete
    Replies
    1. Always trust on own conviction and take decision accordingly .

      Delete
  6. Dear VP,

    Can we know you views on Smruthi Organics and Panchasheel Organics. Both the companies are looking good to me on fundamentals and are available at low Mcap as comapared to their peers.

    Satya

    ReplyDelete
    Replies
    1. Not sure about the quality of these two managements,so neutral on these.

      Delete
  7. hello sir...
    fantastic job ..very dedicative u r...
    i m in confusion ...
    if u r at my place den which stock u preffer amongs follow -
    vulcan enng.
    liberty shoe
    roto pumps
    ion exchange
    simran ..
    blue star
    ....or any other stock ...
    my view is around 20-40%
    medium term ... and risk apetite is up to u...
    i trust u blindly...
    thx again in advance

    ReplyDelete
  8. I am not greedy to expect 40% return in medium term from stock market.Don't believe anyone blindly .Do own home work and take decision on the basis of your findings.I am giving only some suggestions .Money is always yours :).

    ReplyDelete
  9. still.. d stock which is fundamentally sound...and risk of getting down is few ...????

    ReplyDelete
  10. Can u suggest me one fmcg stock .medium risk.7 month timeframe .i personally like HUL , if its a good choice then guide me the price at which I shall buy

    ReplyDelete
    Replies
    1. I have no suggestions for time bounded investment in stock market.

      Delete
  11. The stock is not as convincing as the other recommendations. If people think this will also run as others have recently then it's a trap. I would rather wait for this qtr results.

    The company has erratic performance in past.

    ReplyDelete
  12. Sir, congrats for getting the call on Vadilal correct!
    Would you have an idea, why the scrip is rising? Is there any rumor that the market is acting on?

    ReplyDelete
  13. sir, i benefitted by buying granules, thanks

    ReplyDelete
  14. Very well written I appreciate & must say good job..

    ReplyDelete
  15. dear value pic sir,
    holding granules and themis.after this mid cap fall ....and both registering lower sales and profits...should i add at these levls?thanks

    ReplyDelete

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