Fredun Pharmaceuticals Analysis

dividend

Pros

Cons

• Fredun Pharmaceuticals is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
• No need to calculate the sustainability of Fredun Pharmaceuticals's dividends as it is not paying a notable one for India.
• Fredun Pharmaceuticals is not paying a notable dividend for India, therefore no need to check if the payments are stable.
• Fredun Pharmaceuticals's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.75%).
• Fredun Pharmaceuticals's dividend is below the markets top 25% of dividend payers in India (3.09%).

health

Pros

• Fredun Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Fredun Pharmaceuticals is profitable, therefore cash runway is not a concern.
• Fredun Pharmaceuticals is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3.3x debt.
• Fredun Pharmaceuticals's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (243.1% vs 70.3% today).

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
• Fredun Pharmaceuticals's level of debt (70.3%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Fredun Pharmaceuticals board of directors is about average.
• Daulat's remuneration is lower than average for companies of similar size in India.
• Daulat's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Fredun Pharmaceuticals management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• Fredun Pharmaceuticals is not covered by any analysts.
• Fredun Pharmaceuticals has significant price volatility in the past 3 months.

past

Pros

• Fredun Pharmaceuticals has delivered over 20% year on year earnings growth in the past 5 years.

Cons

• Fredun Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Fredun Pharmaceuticals used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Fredun Pharmaceuticals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Fredun Pharmaceuticals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Fredun Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.

value

Pros

• BSE:539730 is up 12.8% outperforming the Pharmaceuticals industry which returned 6.2% over the past month.
• BSE:539730 is up 12.8% outperforming the market in India which returned 9% over the past month.

Cons

• Fredun Pharmaceuticals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Fredun Pharmaceuticals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Fredun Pharmaceuticals is overvalued based on assets compared to the IN Pharmaceuticals industry average.
• Fredun Pharmaceuticals is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
• Fredun Pharmaceuticals is overvalued based on earnings compared to the India market.
• 539730 underperformed the Pharmaceuticals industry which returned 24.6% over the past year.
• 539730 underperformed the Market in India which returned -14.8% over the past year.