@ravidesai,
Stem cell therapy in theory is meant to replace destroyed or damaged cell lines within a diseased tissue. It is based on the capacity of the stem cells to produce offspring of different cell families. for example a skin cell can birth only more skin cells. It would never be able to gave birth to a neuron. But a stem cell has no family restriction so it can give birth to various cell family types.
The best example for this could be a treatment for Parkinson disease. Parkinsos i s caused by the progressive death of a particular type of neurons in the brain stem in an area called substantia nigra. A stem cell therapy would lead to the implantation of a stem cell that would rapidly reproduce. Its offprings will be new specialized substantia nigra neurons that will replace the missing ones.