The stock opened with a gap up of 4.93% and touched an intraday high of Rs.1971.25, representing a 5% increase on the day. Over the last three consecutive trading sessions, Fredun Pharmaceuticals has delivered a cumulative return of 15.57%, outperforming its sector by 5.29% today. The stock is currently trading above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained upward momentum.
In comparison, the broader market index, Sensex, experienced a decline of 0.36% today, trading at 84,649.07 after an initial positive opening. The Sensex remains 0.76% below its own 52-week high of 85,290.06 and is positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a generally bullish market environment despite the day's dip.
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Fredun Pharmaceuticals has demonstrated remarkable performance over the past year, with a total return of 182.89%, significantly outpacing the Sensex’s 9.45% return in the same period. The stock’s 52-week low was Rs.635, highlighting the substantial appreciation in value over the last twelve months.
Financially, the company’s net sales have shown a compound annual growth rate of 39.73%, while operating profit has grown at a rate of 55.03%. The net profit growth rate stands at 127.87%, reflecting strong profitability trends. These figures are supported by the company’s declaration of positive results for six consecutive quarters, with the latest quarterly net sales reported at Rs.145.30 crores, growing at 35.35%, and profit before tax (PBT) excluding other income at Rs.13.01 crores, growing at 71.64%.
Fredun Pharmaceuticals’ operating profit to interest ratio for the quarter is at 2.89 times, indicating a comfortable coverage of interest expenses. The company’s return on capital employed (ROCE) is recorded at 20.2%, accompanied by an enterprise value to capital employed ratio of 3.3, suggesting an attractive valuation relative to its capital base. The stock is trading at a discount compared to its peers’ average historical valuations, which may be a factor in its current market performance.
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Over the longer term, Fredun Pharmaceuticals has outperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This consistent outperformance underscores the company’s ability to generate market-beating returns within the Pharmaceuticals & Biotechnology sector.
Despite the company’s size and performance, domestic mutual funds currently hold no stake in Fredun Pharmaceuticals. This absence of mutual fund ownership may reflect a cautious stance or a lack of comfort with the stock’s price or business fundamentals from these institutional investors.
In summary, Fredun Pharmaceuticals’ recent surge to a new 52-week high of Rs.1971.25 is supported by strong financial results, sustained price momentum, and favourable valuation metrics. The stock’s performance stands out in a market where the broader indices have shown mixed trends, highlighting its distinctive position within the sector.
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