Fredun Pharmaceuticals Receives 'Sell' Rating from MarketsMOJO, But Shows Long-Term Growth Potential

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO on July 19, 2024. This downgrade is based on the company's flat results in March 2024, with a decrease of 27.09% in PBT LESS OI(Q) at Rs 5.84 crore. Additionally, the company's OPERATING PROFIT TO INTEREST (Q) has reached its lowest point at 2.56 times, while INTEREST(Q) has increased to Rs 4.37 crore.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since July 19, 2024, resulting in a -1.53% return. The Bollinger Band and KST technical factors also indicate a Bearish trend.

In the past year, Fredun Pharmaceuticals has underperformed the market, with a return of only 4.29%, compared to the market's (BSE 500) return of 34.15%. However, the company has shown healthy long-term growth, with an annual growth rate of 29.08% in Net Sales and 43.06% in Operating profit.

Moreover, with a ROCE of 15.3, the company's valuation is considered attractive, with a 2.7 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. Despite the lower return in the past year, the company's profits have increased by 36.5%, resulting in a PEG ratio of 0.8.

In conclusion, while Fredun Pharmaceuticals may have shown underperformance in the past year, its long-term growth and attractive valuation make it a potential investment opportunity for investors to consider. However, the recent 'Sell' rating from MarketsMOJO should also be taken into consideration before making any investment decisions.