FDC Faces Evaluation Adjustment Amid Declining Sales and Profitability Challenges

FDC, a midcap player in the Pharmaceuticals & Biotechnology sector, has recently undergone an adjustment in its evaluation score. This revision reflects underlying trends that have emerged from the company's financial metrics and market position.
In the latest quarter, FDC reported a decline in key performance indicators, with net sales falling to Rs 491.89 crore, a decrease of 5.3% compared to the previous four-quarter average. Profit Before Tax (PBT) and Profit After Tax (PAT) also showed significant declines, with PBT at Rs 37.23 crore, down 44.2%, and PAT at Rs 38.67 crore, down 43.6%. Over the past five years, the company's net sales have grown at an annual rate of 9.42%, while operating profit has seen a modest increase of 2.87%.

Despite a low debt-to-equity ratio, FDC's return on equity stands at 11.7, indicating a relatively expensive valuation with a price-to-book value of 3.5. The stock has generated a return of 0.43% over the past year, contrasting with a profit decline of 12.6%.

These factors contribute to the recent adjustment in evaluation, reflecting the challenges FDC faces in maintaining growth and profitability in a competitive market.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.