Fredun Pharmaceuticals Receives 'Hold' Rating from MarketsMOJO, Shows Strong Long-Term Growth and Attractive Valuation

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on July 1, 2024. This upgrade is based on the company's healthy long-term growth, with net sales increasing by an annual rate of 29.08% and operating profit at 43.06%.
Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Mildly Bearish on June 27, 2024. The MACD and KST technical factors are also Bullish, indicating a positive 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 2.7. The stock is currently trading at a discount compared to its average historical valuations.

However, the company's recent financial results for March 2024 were flat, with a decrease in PBT LESS OI(Q) by -27.09% and the lowest operating profit to interest ratio at 2.56 times. The interest expense also increased to Rs 4.37 crore.

Despite these challenges, Fredun Pharmaceuticals has outperformed the market in the past year, generating a return of 4.19%. However, this is significantly lower than the market (BSE 500) returns of 37.64%. With a PEG ratio of 0.8, the company's profits have risen by 36.5% in the past year, indicating potential for future growth.

Overall, while the recent financial results may have affected the stock's performance, the company's long-term growth potential and attractive valuation make it a 'Hold' for investors.