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 April 9, 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, showing improvement from its previous Mildly Bearish trend on April 9, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook 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 historical valuations, making it an attractive investment opportunity. Additionally, the company's profits have risen by 202.8% in the past year, resulting in a low PEG ratio of 0.1.

The majority shareholders of Freshtrop Fruits are its promoters, indicating their confidence in the company's future prospects. The stock has also consistently outperformed the BSE 500 index in the last 3 annual periods, generating a return of 58.99%.

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

Overall, while Freshtrop Fruits may have some challenges in terms of long-term growth, its current financials and technical indicators suggest a positive outlook for the stock. Investors may consider holding onto their positions in the company for now.