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

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on August 26, 2024. This upgrade is based on the company's healthy long-term growth, with net sales increasing at an annual rate of 27.35% and operating profit at 43.06%. In the most recent quarter, the company saw 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).
The technical trend for Fredun Pharmaceuticals is currently sideways, indicating no clear price momentum. However, the trend has improved from mildly bearish on August 26, 2024, and has generated a 0.15% return since then. With a ROCE of 15.3 and 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. Additionally, the company's profits have risen by 34.5% in the past year, while the stock has underperformed the market (BSE 500) with a negative return of -17.74%. The PEG ratio of the company is 0.7, indicating a potential undervaluation.

It is worth noting that the majority shareholders of Fredun Pharmaceuticals are non-institutional investors. This could potentially lead to higher volatility in the stock price. However, the company's strong financial performance and attractive valuation make it a hold for now. Investors should keep an eye on the stock's performance in the coming months to make an informed decision.