Check Before You Invest : Fredun Pharmaceuticals Ltd

Snapshot

Q.1 Which industry/sub-sector does Fredun Pharmaceuticals Ltd belong to?

Fredun Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Fredun Pharmaceuticals Ltd a good quality company?

Fredun Pharmaceuticals Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Fredun Pharmaceuticals Ltd undervalued or overvalued?

Fredun Pharmaceuticals Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Fredun Pharmaceuticals Ltd a good buy now?

Fredun Pharmaceuticals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd revenue growth is 30.4% for FY-2025, which is below its 5-year CAGR of 32.11%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Return on capital employed is 18.94% for FY-2025, which is above its 5-year historical median of 17.13%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Return on Asset is 5.24%, which is above its 5-year historical median of 4.86%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Return on equity is 15.93% for FY-2025, which is above its 5-year historical median of 13.86%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Cash conversion cycle is 166 days, above its 5-year historical median of 135 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.14	1.23
ROE	15.93	13.86
ROCE	18.94	17.13
Cash Conversion Cycle	166 days	135 days

Q.6 Gross Profit margin of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.2% for FY-2025, which is in line with its 5-year median of 7.2%, indicating stable margins.

Q.7 Operating Profit Margin of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.8% for FY-2025, which is above its 5-year median of 10.11% indicating increasing margins.

Q.8 Net Profit Margin of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Net Profit Margin is 4.59% for FY-2025, is above with its 5-year median of 3.93%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.2	7.2
Operating Profit Margin	11.8	10.11
Net Profit Margin	4.59	3.93

Q.9 Debt to Equity ratio of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Debt-to-Equity ratio is 1.18, which is above with the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Fredun Pharmaceuticals Ltd?

Fredun Pharmaceuticals Ltd Debt to cash flow from operations is -5.76, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Fredun Pharmaceuticals Ltd?

Promoters hold 44.17% of the Fredun Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Fredun Pharmaceuticals Ltd vs industry peers?

Fredun Pharmaceuticals Ltd revenue CAGR is 32.11%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	30.4	8.3
Gross Profit Growth	32	14.7
Operating Profit Growth	39.5	11.4
Net Profit Growth	31.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.14	0.81
ROE	15.93	9.49
ROCE	18.94	11.91
Cash Conversion Cycle (days)	166.09	85

Valuation & price assessment

Q.1 Stock return of Fredun Pharmaceuticals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 65.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	65.5%	40.3%	32.7%	218%

Q.3 Valuation ratios of Fredun Pharmaceuticals Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	36.12	32.77	31.09
Price to Book	4.61	3.85	2.85
Price to Sales	2.09	1.37	2.79
EV to EBITDA	16.76	14.54	15.87

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