Fredun Pharmaceuticals Receives 'Sell' Rating from MarketsMOJO Due to Technical Indicators and Underperformance in Market

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO on August 6, 2024. This downgrade is based on various technical indicators that suggest a mildly bearish trend for the stock.
The technical trend for the stock has deteriorated from mildly bullish to mildly bearish on August 6, 2024. This is due to factors such as MACD, Bollinger Band, and KST, which are all showing bearish signals.

In addition, Fredun Pharmaceuticals has underperformed the market (BSE 500) in the last year, generating negative returns of -27.10% while the market has generated returns of 32.32%. This further supports the 'Sell' rating for the stock.

However, the company has shown healthy long-term growth with an annual growth rate of 27.35% in net sales and 43.06% in operating profit. In the latest quarter, the company has also reported positive results with a 72.1% growth in PAT(Q), 27.03% growth in NET SALES(Q), and 35.29% growth in PBT LESS OI(Q).

Moreover, with a ROCE of 15.3, the company has an attractive valuation with a 2.6 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated negative returns, its profits have increased by 34.5%, resulting in a PEG ratio of 0.7.

In conclusion, based on technical indicators and underperformance in the market, MarketsMOJO has downgraded Fredun Pharmaceuticals to a 'Sell'. However, the company has shown strong long-term growth and attractive valuation, which may be worth considering for investors.