Freshtrop Fruits – Multibagger Analysis

The company was incorporated as a Private Limited company on 30th September, 1992, at Ahmedabad in the state of Gujarat. It was converted into a Public Limited company on 22nd September, 1994.
Freshtrop was one of the first companies in the corporate sector to enter into exporting fresh fruit to developed countries. The company has played a pioneering role in establishing exports of grapes and pomegranates from India to Europe.

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CMP: 60.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes. image
Durable Competitive Advantage Moderate. image
Future Growth Drivers Good. image
Conservative Debt (long term debt < 3 Net Profit) Not. image
Debt Equity Ratio, Current Ratio 0.64 image
Return on Equity must be Above Average 18% image
Low CAPEX required to maintain current operations Moderate. image
Management is holding / buying the stock 55%.  Increasing. (no pledging) image
Price is Under Valued (< intrinsic value) Yes. image
Stock Price is consolidating (now) Yes. image
Stock Price is growing in past years along with EPS growth Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PE 9 (Consolidated); PB 2 image
Cash Flow Positive, Net Profit % greater than 8% Yes.  No. image
Paying Dividends, Tax Yes. image
EPS Growth Rate 30% above as average. image
Jump in Trailing Result EPS Yes. image
Jump in Quarterly Result EPS Yes 50% above. image
Expected Gain in 5 Years Taking 30% as average and PE resizing to 30, 12-15 times. image
Price Movement Graph, 52 Week High & Low 74.00/17.00 image
Volume Analysis 36000 image
Power of Brand Yes. image
Corporate Governance, Reputation of Leaders Yes. image
Fraud reported Not in current search. image
Analysis Report Annual Report shows growth prospects LINK image

Declaration

Based on value, growth parameters & future expansion possibilities, we declare this as a Multibagger.

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Allocation

2-3% of your portfolio.

Warning

As the company have debts, ensure you clear your holdings before start of recession in 1-2 years.  During recession time debt companies sucks!

Disclaimer

Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

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