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/-