Fredun Pharmaceuticals Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth Potential

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on August 12, 2024. This upgrade comes as a result of the company's healthy long-term growth, with net sales increasing at an annual rate of 27.35% and operating profit at 43.06%. In addition, the company has shown positive results in the quarter ending June 2024, with a 72.1% growth in PAT(Q), 27.03% growth in NET SALES(Q), and 35.29% growth in PBT LESS OI(Q).
Despite these positive indicators, the technical trend for the stock is currently sideways, indicating no clear price momentum. The stock has also underperformed the market in the last year, generating negative returns of -18.94% while the market (BSE 500) has seen a 35.35% increase. However, with a ROCE of 15.3 and an attractive valuation with a 2.6 Enterprise value to Capital Employed, the stock is trading at a discount compared to its average historical valuations.

It is worth noting that the majority of shareholders in Fredun Pharmaceuticals are non-institutional investors. This may have contributed to the stock's underperformance in the market. However, the company's profits have risen by 34.5% in the past year, resulting in a low PEG ratio of 0.7. This suggests that the stock may have potential for future growth.

Overall, while the stock may have underperformed in the past year, Fredun Pharmaceuticals shows promising signs of growth and has received a 'Hold' rating from MarketsMOJO. Investors may want to keep an eye on this microcap company as it continues to show positive results and attractive valuations.