During Monday’s trading session, the shares of a leading provider of Pharmaceuticals and innovative healthcare solutions for Human & veterinary applications surged nearly 10.6 percent to Rs. 730 on BSE, after enhancing production capacities with its second Italian Tube filli machine, boosting capacity by 2.9 times.
With a market cap of Rs. 338.4 crores, at 02:52 p.m., the shares of Fredun Pharmaceuticals Limited were trading in the green at Rs. 720.2, up by 9.2 percent, as compared to its previous closing price of Rs. 659.75.
What’s the news:
According to the latest regulatory filings with the BSE, Fred Pharmaceuticals Limited announced the installation of a second Italian Tube Filling Machine at its production facility. This significant investment increases the company’s production capacity by an impressive 2.9 times, enabling it to meet the growing demand for its high-quality products.
The new machine, manufactured by Axomatic in Italy, underscores Fredun’s commitment to technological advancement and operational efficiency
With this installation, the company is poised to meet the growing demand for its products, having recently received an order to manufacture 2 crores tubes. By FY26, Fredun is expected to produce 4 crore tubes, doubling its current capacity and solidifying its position in topical manufacturing.
In addition to the tube filling machine, Fredun is expanding it’s manufacturing capabilities in Topicals, targeting a 300 percent increase in production capacity by Q1 FY26.
The company has placed an order for a 1000 KG Manufacturing Vessel, which will increase the number of tubes manufactured per batch, reducing both the number of batches required and the costs and downtime involved in QC release.
The new manufacturing vessel & tube filling machine will be used manufacture a variety of products in multiple size offerings. Moreover, the installation of two Automatic Carton Packaging Machines, with an additional one planned for Q4 FY25, will revolutionize the company’s packaging process. This move is expected to increase productivity and reduce dependency on the packing workforce by more than 80 percent.
Financials:
Fredun Pharma reported a significant growth in revenue from operation experiencing a year-on-year increase of nearly 31 percent, rising from Rs. 82 crores in Q2 FY24 to Rs. 107.4 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased fr Rs. 3.94 crores to Rs. 4.3 crores, representing a growth of around 9.2 percent YoY.
Key Financial Ratios:
In terms of key financial metrics, Fredun Pharma has a Return on Equity (RoE) of 14.3 percent and a return on capital employed (RoCE) of 17.1 percent. Additionally, the company’s debt-to-equity ratio stands at 1.05.
Stock Performance:
The stock has delivered negative returns of nearly 11 percent in one year, as well as around 10.5 percent returns in the last six months. Similarly, the shares of Fredun Pharma have given negative returns of about 1.5 percent in the last one month.
About the company:
Established in 1987, Fredun Pharmaceuticals Limited is a leading formulation manufacturing company in India, operating as a wholly owned subsidiary of Fredun Group.
The company offers a range of products, including antihypertensives, antidiabetic, antiretroviral drugs (ARVs) and narcotics, along with manufacturing of dietary/herbal supplements, nutraceuticals, cosmeceuticals, and other healthcare products along with animal healthcare products.
Written by Shivani Singh
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