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October 19, 2014

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Freshtrop Fruits – Multibagger Analysis

by Futurecaps Advisor

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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Company URL: http://www.freshtrop.in/

Screener URL: http://www.screener.in/company/?q=530077

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.

image_thumb1

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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1 Comment Post a comment
  1. Oct 30 2014

    freshtrop will be a debt free enity in 2 years…..

    Reply

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