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

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO on October 7th, 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 latest quarter, the company has shown 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). Additionally, with a ROCE of 12.3, the company has a very attractive valuation with a 2.2 enterprise value to capital employed.

Despite the recent upgrade, the stock is currently trading at a discount compared to its average historical valuations. However, over the past year, the stock has underperformed the market (BSE 500) with a negative return of -12.87%, while its profits have increased by 34.5%. The PEG ratio of the company is also at a favorable 0.7.

It is worth noting that the majority of the company's shareholders are non-institutional investors. Technically, the stock is currently in a mildly bearish range, with both the MACD and KST technical factors showing a bearish trend.

Overall, while Fredun Pharmaceuticals has shown promising growth and attractive valuations, it has underperformed the market in the past year. Investors may want to hold onto their positions and monitor the stock's performance in the coming months.