Fredun Pharmaceuticals Receives 'Sell' Rating from MarketsMOJO, Despite Strong Long-Term Growth.

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO on May 9, 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) ratio is at its lowest at 2.56 times, while its interest (Q) is at its highest at Rs 4.37 crore.
Technically, the stock is in a mildly bearish range and has seen a deterioration in its trend from mildly bullish on May 8, 2024. Since then, the stock has generated negative returns of -7.67%. The Bollinger Band and KST technical factors also indicate a bearish trend for the stock.

In the past year, Fredun Pharmaceuticals has underperformed the market (BSE 500) with negative returns of -15.04%, while the market has generated returns of 31.00%. 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.

The company also has an attractive valuation with a ROCE of 15.3 and an enterprise value to capital employed ratio of 2.7. It is currently trading at a discount compared to its average historical valuations. Despite the negative returns in the past year, the company's profits have increased by 36.5%, resulting in a PEG ratio of 0.8.

In conclusion, Fredun Pharmaceuticals has received a 'Sell' rating due to its recent flat results and bearish technical trend. However, the company has shown healthy long-term growth and has an attractive valuation, making it a potential investment opportunity for investors.