Fredun Pharmaceuticals Surges Over 5% on Entry into Animal Veterinary Segment
Mumbai, India – Shares of Fredun Pharmaceuticals Ltd jumped over 5.5% in intraday trade on Wednesday after the company announced its expansion into the animal veterinary segment. This strategic move is expected to open new revenue streams as the global demand for animal healthcare solutions continues to rise. Investors welcomed the announcement, driving the stock price higher.
Stock Price Movement
During the trading session, Fredun Pharmaceuticals Ltd reached an intra-day high of ₹710, rising from its previous close of ₹673.80. However, some profit booking led the stock to settle at ₹700 per share.
The bullish momentum in the stock reflects investor optimism regarding the company’s foray into the animal health sector, which is projected to witness strong growth in the coming years.
Foray into Large Animal Healthcare
Fredun Pharmaceuticals, known for its companion animal healthcare solutions, has expanded into large animal veterinary care under the FREOSSI Large Animals brand. The company introduced two flagship products:
- Freossi Tone+ – Formulated to enhance lactation and improve milk quality in dairy animals.
- Freossi Power – Designed to strengthen joint health and mobility in large animals.
The products have been scientifically tested and developed in collaboration with veterinary experts, reinforcing Fredun Pharmaceuticals’ credibility in this sector. Given the rising demand for livestock health solutions, this expansion is likely to contribute significantly to the company’s future growth.
Existing Product Portfolio & Global Reach
Fredun Pharmaceuticals has an extensive pharmaceutical portfolio, including anti-bacterial, anti-malarial, and nutraceutical products. The company operates through multiple brands, including:
- Fredna
- Surgifre
- Fredun API
- Fredun DC
- Fredun Pellets
Additionally, the company is expanding its global presence, with 697 product registrations in multiple international markets and another 394 pending approvals. Fredun Pharmaceuticals is strengthening its position in Southeast Asia, Africa, and the GCC (Gulf Cooperation Council) regions through strategic partnerships.
This expansion strategy is expected to fuel 15% year-on-year export growth, ensuring long-term revenue visibility for the company.
Strong Financial Performance
Fredun Pharmaceuticals has demonstrated impressive financial growth, as highlighted by its latest Q3 FY25 earnings report:
- Revenue: ₹102.70 crores (+18% YoY)
- Net Profit: ₹5.33 crores (+26% YoY)
- Earnings Per Share (EPS): ₹39.81
This growth reflects strong operational efficiency, driven by increased product registrations and expansion into new market segments.
Financial Ratios & Market Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹321 Cr. |
| Current Price | ₹680 |
| 52-Week High/Low | ₹1,024 / ₹635 |
| Stock P/E | 17.1 |
| Industry P/E | 34.8 |
| Book Value | ₹277 |
| Dividend Yield | 0.10% |
| Return on Capital Employed (ROCE) | 17.1% |
| Return on Equity (ROE) | 14.3% |
| Debt-to-Equity Ratio | 1.05 |
| Price-to-Book Value | 2.45 |
| Intrinsic Value | ₹815 |
| RSI (Relative Strength Index) | 50.2 |
| PEG Ratio | 0.60 |
| Free Cash Flow (3 Yrs) | ₹-38.4 Cr. |
| Free Cash Flow (5 Yrs) | ₹-51.8 Cr. |
| Total Debt | ₹137 Cr. |
The low Price-to-Earnings (P/E) ratio of 17.1, compared to the industry average of 34.8, suggests that the stock is relatively undervalued.
Future Outlook & Growth Potential
With strong revenue growth, expanding global footprints, and a strategic entry into the animal healthcare sector, Fredun Pharmaceuticals is well-positioned for long-term success. The company’s focus on scientific research, innovative products, and export expansion makes it an attractive pick in the pharmaceutical space.
While short-term market volatility may impact the stock, the long-term fundamentals remain solid. Investors should keep an eye on new product launches, regulatory approvals, and global expansion initiatives.
Frequently Asked Questions (FAQs)
1. Why did Fredun Pharmaceuticals’ stock rise by 5%?
The stock surged after the company announced its entry into the large animal veterinary segment, a strategic move that has the potential to boost revenue and market presence.
2. What are the new products launched by Fredun Pharmaceuticals in the veterinary segment?
The company introduced Freossi Tone+ (for lactation and milk quality) and Freossi Power (for joint health and mobility in large animals).
3. How has the company performed financially in Q3 FY25?
Fredun Pharmaceuticals reported ₹102.70 crore revenue (+18% YoY) and ₹5.33 crore net profit (+26% YoY), showcasing strong growth.
4. Is Fredun Pharmaceuticals a good investment?
The company has strong financials, a low P/E ratio (17.1) compared to the industry average, and is expanding into new markets. This makes it an attractive investment for long-term growth.
5. What are the key financial ratios of Fredun Pharmaceuticals?
The company has a ROCE of 17.1%, ROE of 14.3%, a debt-to-equity ratio of 1.05, and an intrinsic value of ₹815, suggesting potential undervaluation.
6. What is the company’s global expansion strategy?
Fredun Pharmaceuticals has 697 registered products globally, with another 394 in the pipeline. The company is focusing on Southeast Asia, Africa, and the GCC region to expand its exports.
7. What is the long-term outlook for Fredun Pharmaceuticals?
With strong financial growth, expanding product portfolios, and a focus on exports, the company is well-positioned for sustained long-term growth.
Final Thoughts
Fredun Pharmaceuticals’ expansion into the large animal veterinary sector marks a major milestone in its growth trajectory. The company’s strong fundamentals, increasing market share, and innovative product line make it a compelling stock to watch.
Investors looking for long-term pharmaceutical opportunities may find Fredun Pharmaceuticals an attractive bet, given its undervalued stock price, robust earnings growth, and global expansion plans.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.