Fredun Pharmaceuticals Receives 'Hold' Rating from MarketsMOJO, Shows Potential for Long-Term Growth

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on May 7, 2024.
The upgrade is based on the company's healthy long-term growth, with net sales growing at an annual rate of 29.24% and operating profit at 43.06%. Additionally, the stock is currently in a mildly bullish range, with the technical trend improving from mildly bearish on May 7, 2024. One key technical factor, the Bollinger Band, has been bullish since the same date.

Furthermore, Fredun Pharmaceuticals has an attractive valuation with a ROCE of 15.3 and an enterprise value to capital employed ratio of 3.1. The stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has only generated a return of 0.21%, its profits have increased by 46.7%. The company's PEG ratio is also at a favorable 0.8.

However, the company's results for December 2023 were flat, with the operating profit to interest ratio at its lowest at 2.79 times and interest at its highest at Rs 3.77 crore. This may have contributed to the stock's underperformance in the last year, with a return of only 0.21% compared to the market's (BSE 500) return of 34.08%.

Overall, Fredun Pharmaceuticals shows potential for long-term growth and has received a 'Hold' rating from MarketsMOJO. Investors may want to keep an eye on the company's future performance and financial results.