The shares of the pharmaceutical formulations manufacturer fell up to 10 percent despite the company’s net profit and revenue increased by 48 percent and 30 percent YoY, respectively in the fourth quarter.
With a market capitalization of Rs 432.79 crore, the shares of Fredun Pharmaceuticals Ltd were trading at Rs 923.95 per share, increasing around 8 percent as compared to the previous closing price of Rs 1,002.35 apiece.
Looking into the company’s performance, Fredun Pharmaceuticals Ltd’s revenue increased by 35 percent on a quarter-on-quarter basis from Rs. 87.00 crore in Q3FY24 to Rs. 118.03 crore in Q4FY24. Further, revenue increased by 48 percent year on year, from Rs. 79.81 crore in Q4FY23 to Rs. 118.03 crore in Q4FY24.
Fredun Pharmaceuticals Ltd’s net profit increased by 20 percent on a quarter-on-quarter basis, from Rs. 4.22 crore in Q3FY24 to Rs. 5.06 crore in Q4FY24. Further, net profit increased by 30 percent year on year from Rs. 3.89 crore in Q4FY23 to Rs. 5.06 crore in Q4FY24.
The company’s profitability measures show an incline in return on equity (RoE) from 9.30 percent in FY 21-22 to 11.21 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 11.71 percent to 17.72 percent. In contrast, the net profit margin (NPM) was 3.93 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 48.92 percent while Retail shareholders own a 49.49 percent stake in the company, and domestic Institutional Investors own a 1.59 percent stake.
Fredun Pharmaceuticals Ltd. is an Indian pharmaceutical firm. The company’s primary business is medicines and healthcare. The company is divided into four business segments: generics (Exports and Fredun Gx), pet healthcare (Freossi), nutraceuticals (Fredun Nutrition), and cosmetics (Bird and Beauty or BnB).
Written by:- Abhishek Singh
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