FRESHTROP FRUITS – can be A serious Longterm FMCG player

FRESH FRUITS

CMP – 94

MATKET CAP – 115cr

52wk HIGH/Low – 197/91.90

Agressive player can Add at cmp & Safe investor should Start SIP & Add more in 75-85 zone for Accmulation as Currently Sentiments are negative.

OVERVIEW

🔷️Freshtrop was incorporated on 30th September 1992 as a Private Limited Company in the state of Gujarat. It was converted into a Public Limited Company on 22nd September 1994.
Freshtrop is one of the first companies in the corporate sector in India to enter into the business of exports of Fresh Produce. The company has played a pioneering role in establishing exports of grapes and pomegranates from India to Europe

🔷️Freshtrop’s focus on building and maintaining networks of growers at several different locations has enabled it to become a consistent and dependable supplier for the past 25 years

🔷️Freshtrop established a state-of-the-art juice processing plant at Nasik, Maharashtra, about 180 km from Mumbai in 2009.

🔷️In last 10 years its sales has grown from 38cr To 179cr.

Freshtrop Fruits Espically Grapes are Available in Many Countries Like – China,Hong Kong,Singapore & Europe.

🔷️It has Good clientele reach and supplies to Many big supermarkets like Marks & Spencer,Tesco,Migros,Asda etc.

🔷️In 2015 company set up high care area for fresh cut fruits.Ready to eat pomegranate Arils for retail & food service sectors. supplying pomegranate Arils to Europe & supplies 1.4MT Arils Exported per Day.

🔷️Company also supplies Coconut chunks

Aseptic Bags -Pomegranate,Gauva,Amla,Mango,watermelon,Pappaya & Tomato Pulp

🔷️Organic Mango pulp & Frozen pulp of Mango,pomegranate & Gauva

🔷️In year 2017 company did expansion of setting up cold extraction unit along with latest HPP technology for shelf life extension at Nashik.

🔷️In 2018 company launched a range of 100% cold extracted fruit & veggie blends fruit nectars and Dairy free nut milks.

🔷️In India it’s available in major cities like Mumbai,Thane,Navi Mumbai,pune,nashik,gurgaon& Hyderabad.Also available at Big basket & Amazon.

🔷️Companies Top client Include PepsiCo,Walmart,ITC etc.

🔷️Company is targeting 100cr sales from Second Nature in next few years.

🔷️Its main competitor are Raw Juices & Paper Boat.

Raw pressers commanding 500cr value & posted 15cr loss in 2017 and Paperboat did Revenue of 118cr & Loss of 44cr in 2018.

🔷️Company is expected to do profits of 17cr To 20cr in FY20 vs 13cr in FY19 & 8cr in FY18.

🔷️It’s new enterprise sector with lots of growth as can be seen as New Consumption Story.

🔷️This can be a serious Player in FMCG sector in next Few years and can get Higher valuation.It can be Multibagger in making in next 4 to 5 years If all things go Well from here onwards.

Recently Crisil Also Upgraded Freshtrop Fruits Credit Rating Link :

https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Freshtrop_Fruits_Limited_July_25_2019_RR.html

Disc – All views expressed are personal and for study & Educational purpose only.Consult you financial advisor before taking any position based on above article.