Fredun Pharmaceuticals Receives 'Hold' Rating and Shows Strong Long-Term Growth

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown healthy long-term growth, with its net sales increasing by an annual rate of 29.08% and operating profit at 43.06%.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on 21-Jun-24. Multiple factors, such as MACD, KST, and OBV, indicate a bullish outlook for the stock.

In terms of valuation, Fredun Pharmaceuticals has an attractive ROCE of 15.3 and a low enterprise value to capital employed ratio of 2.9. The stock is currently trading at a discount compared to its average historical valuations.

However, the company's results for the quarter ending in March 2024 were flat, with a decrease in PBT and operating profit to interest ratio, and an increase in interest expenses. This may have contributed to the stock's underperformance in the last year, with a return of only 10.25%, compared to the market's (BSE 500) return of 36.15%.

Despite this, Fredun Pharmaceuticals has shown a 36.5% increase in profits over the past year, resulting in a low PEG ratio of 0.9. This indicates that the stock may have potential for future growth.

Overall, with its recent 'Hold' rating and strong long-term growth, Fredun Pharmaceuticals may be a stock to keep an eye on in the pharma industry. However, investors should also consider the company's flat results and underperformance in the market before making any investment decisions.