Upper Circuit: This micro-cap pharma stock reported stellar Q3FY23 results!

In an aim to expand their product portfolio, the company is focusing on developing multiple manufacturing sites

Fredun Pharmaceuticals Limited, a diversified healthcare and pharmaceuticals company, announced its financial results for the quarter ended December 31, 2022. Key highlights of the same are as follows:  

• Revenue for the quarter was Rs 78 crore (a healthy growth of 43.7 per cent YoY).   
• EBITDA grew by 67.8 per cent YoY to Rs 7.3 crore, on the back of higher economies of scale and favourable product mix. EBITDA margins improved by 134 basis points to 9.4 per cent during the quarter as compared to 8 per cent in Q3FY22.  
• PAT stood at Rs 3.5 crore, an increase of 84.7 per cent YoY.   

  In an aim to expand their product portfolio, the company is focusing on developing multiple manufacturing sites. They initiated contract manufacturing from three new locations this quarter, and with this, they are currently manufacturing at nine locations across India. They plan to set up four additional sites by Q1FY24 to execute products which are either under discussion or in the pre-launch phase.

  To quote Fredun Medhora, Managing Director of Fredun Pharmaceuticals from a filing with the exchange, “On the back of our robust order book and strongproduct pipeline, I would like to share our 3-year plan wherein we aim to maintain the growth rate of 25-30 per cent CAGR till FY26. Contribution from our non-Pharma segments is likely to increase from current 3 per cent to 15-20 per cent of consolidated revenues. We expect our EBITDA margins to improve from current single digits to mid-teens by FY26.”

  Fredun Pharmaceuticals Limited is engaged in manufacturing of various pharmaceutical formulations for pharma companies in India and across Africa, South-East Asia and CIS countries and Latin America. It is also in the business of healthcare and aims to be a holistic healthcare provider.  

  On Monday, shares of Fredun Pharmaceuticals got locked at 10 per cent upper circuit to Rs 1087.90. The scrip witnessed a massive spurt in volume by more than 2.59 times.   
  Watch out for this trending micro-cap pharma stock in the coming sessions!