Pharma stock jumps over 5% after foraying into animal veterinary segment

Shares of this Pharma stock rallied over 5 percent after the company announced its expansion into the animal veterinary segment. The move marks a strategic diversification aimed at tapping into the growing demand for animal healthcare solutions. Investors responded positively to the development, driving the stock higher in intraday trade.

Price Movement

During Wednesday’s trading session, shares of Fredun Pharmaceuticals Ltd reached an intra-day high of Rs.710.00 per share, rising 5.5 percent from its previous close of Rs.673.80 per share. However, the stock declined later to Rs.700.00 each.  

Business Expansion 

Fredun Pharmaceuticals Limited, a leading pharmaceutical and healthcare solutions provider for veterinary applications, has entered the large animal veterinary segment under its FREOSSI Large Animals brand. The company has launched two new products, Freossi Tone+ and Freossi Power, aimed at addressing common health issues in livestock.  

FREOSSI is already well known for its expertise in companion animal care, which helps build trust as it expands into large animal products. These new offerings are backed by scientific and clinical research and developed in collaboration with veterinary experts. They focus on improving livestock health by tackling key concerns such as lactation issues, milk quality, joint stiffness, and mobility problems.

Product Range

The company provides a wide range of pharmaceutical products, including anti-bacterial and anti-malarial drugs.  Fredun Group also manages several other brands such as Fredna, Surgifre, Fredun API, Fredun DC, and Fredun Pellets.

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Global Footprints

Fredun Pharmaceuticals Ltd has been actively expanding its global footprint, with a particular focus on high-growth markets. As of FY24, the company has successfully secured 697 product registrations across various regions, with another 394 products currently in the registration process. 

These efforts are concentrated in key markets such as Southeast Asia, Africa, and the GCC, positioning Fredun Pharmaceuticals to enhance its presence with generic and nutraceutical products. Exports are expected to grow by 15 percent year-on-year, driven by these new registrations and the company’s strategic partnerships in these regions.

Earnings Report

According to its recent financial updates, Fredun Pharmaceuticals Ltd reported remarkable consolidated revenue of Rs.102.70 crores in Q3 FY25, marking a 18 percent increase from Rs.87.00 crores in Q3 FY24. In addition, the company saw a significant surge in net profit to Rs.5.33 crores, rising 26 percent from Rs.4.22 crores in the same period last year.

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 15.69 percent and a Return on Equity (ROE) of 13.52 percent. Its Price-to-Earnings (P/E) ratio stands at 16.93, lower than the industry average of 33.97. Furthermore, the company maintains a current ratio of 3.74, a debt-to-equity ratio of 1.05, and an Earnings Per Share (EPS) of Rs.39.81. 

Written by – Siddesh S Raskar

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