Fredun Pharmaceuticals Receives Stock Upgrade, Shows Strong Growth and Attractive Valuation

Fredun Pharmaceuticals, a microcap pharmaceutical company, has recently received a stock call upgrade from MarketsMOJO. The stock has been upgraded to a 'Hold' rating on 24th July 2024.
The upgrade is based on the company's healthy long-term growth, with net sales growing at an annual rate of 29.08% and operating profit at 43.06%. Additionally, the technical trend for the stock has improved from Mildly Bearish to Mildly Bullish, with multiple factors such as MACD, Bollinger Band, and KST showing a bullish trend.

Moreover, the company's ROCE (Return on Capital Employed) stands at an attractive 15.3%, with an enterprise value to capital employed ratio of 2.7. This indicates that the stock is currently trading at a discount compared to its average historical valuations.

Despite the flat results in March 2024, with PBT LESS OI(Q) at Rs 5.84 crore, falling by -27.09%, and the operating profit to interest (Q) at its lowest of 2.56 times, the company has still managed to outperform the market in terms of profits. In the last year, while the stock has generated a return of -0.21%, its profits have risen by 36.5%, resulting in a PEG ratio of 0.8.

However, it is worth noting that the stock has underperformed the market (BSE 500) in the last year, with the market generating returns of 35.30% while the stock has generated negative returns of -0.21%. This could be a cause for concern for potential investors.

Overall, with its recent stock call upgrade and attractive valuation, Fredun Pharmaceuticals could be a stock to watch out for in the pharma industry. However, investors should also consider the company's underperformance in the market before making any investment decisions.