Freshtrop Fruits Receives 'Hold' Rating from MarketsMOJO, Shows Strong Debt Servicing Ability

Freshtrop Fruits, a microcap company in the FMCG industry, has recently received a 'Hold' rating from MarketsMOJO on March 26, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.42 times.
Technically, the stock is currently in a Mildly Bullish range, with the technical trend improving from Mildly Bearish on March 26, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, are also indicating a bullish trend for the stock.

In terms of valuation, Freshtrop Fruits has a Very Attractive ROE of 16.1 and a 1.7 Price to Book Value. The stock is currently trading at a discount compared to its average historical valuations. Additionally, in the past year, the stock has generated a return of 64.90%, while its profits have risen by 202.8%. The PEG ratio of the company is also at a low 0.1.

The majority shareholders of Freshtrop Fruits are the promoters, which is a positive sign for investors. The company has a track record of market-beating performance in the long term as well as the near term. Along with generating a return of 64.90% in the last year, the stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company has shown poor long-term growth, with an annual rate of -2.80% for operating profit over the last 5 years. In December 2023, the company reported negative results, with a fall of -59.2% in net sales, -1083.8% in PAT, and the lowest PBDIT of Rs -4.05 cr.

Overall, while Freshtrop Fruits has received a 'Hold' rating, investors should keep an eye on the company's long-term growth and financial performance.