Now Reading: Fredun Pharmaceuticals rises after Q1 profit nearly doubles
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Fredun Pharmaceuticals rises after Q1 profit nearly doubles
Fredun Pharmaceuticals shares rose more than 3.5% on 7 August, reaching an intraday high of Rs 1,264.95 on the BSE, about Rs 66.7 below their record high. The move followed a strong…
The Story in Brief
Fredun Pharmaceuticals shares rose more than 3.5% on 7 August, reaching an intraday high of Rs 1,264.95 on the BSE, about Rs 66.7 below their record high. The move followed a strong June 2026 quarter, with consolidated net profit rising 94.1% year on year to Rs 13.13 crore. Revenue from operations increased 90.7% to Rs 227.75 crore, while profit before tax grew 127.3% to Rs 20.55 crore.
Total expenses rose 86.6% to Rs 206.79 crore, led by higher raw material, depreciation and other costs. The company allotted 1.10 crore bonus shares in a 2:1 issue on 17 July. LiveMint reported the stock had gained 768.52% over five years, but past returns do not assure future performance.
The Indian Opinion
The easy multibagger story leaves out the harder part. Fredun’s profit grew faster than revenue, but raw material costs rose 97.6%, and total expenses still climbed sharply. The bonus issue also changes the share count, so headline price gains need careful comparison. Investors should examine cash flows, margins and the next quarter before treating one strong result as a lasting trend. Can operating profit keep rising after input costs are included?
Source: livemint.com
This story was synthesised by AI from the source linked above.
