Freshtrop Fruits Receives Stock Upgrade from MarketsMOJO, Rated 'Hold' with Strong Debt Management and Attractive Valuation

Freshtrop Fruits, a microcap company in the FMCG industry, has recently received a stock call upgrade from MarketsMOJO. The stock is now rated as 'Hold' based on various factors.
One of the reasons for this upgrade is the company's strong ability to service its debt. With a low Debt to EBITDA ratio of 1.42 times, Freshtrop Fruits is in a good position to manage its debt.

Technically, the stock is in a Mildly Bullish range, with the technical trend improving from Mildly Bearish on 08-Feb-24. This is supported by factors such as MACD, Bollinger Band, and KST, all of which are currently Bullish.

In terms of valuation, Freshtrop Fruits is considered to be Very Attractive with a Price to Book Value of 1.7. 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 49.71%, while its profits have increased by a staggering 1101.1%. This is reflected in the company's PEG ratio of 0, indicating a potential undervaluation.

The majority shareholders of Freshtrop Fruits are its promoters, which can be seen as a positive sign for investors. The company has also outperformed the market (BSE 500) with a return of 49.71% in the last year, compared to the market's return of 32.13%.

However, there are some concerns regarding the company's long-term growth. Over the last 5 years, the operating profit has grown at a negative annual rate of -2.80%. In addition, the company's results for Sep 23 were flat, with PBT LESS OI(Q) at Rs -0.78 cr, a decrease of -112.9%, and PAT(Q) at Rs -0.06 cr, a decrease of -101.2%. The NET SALES(Q) were also at their lowest at Rs 20.48 cr.

Overall, while Freshtrop Fruits has shown strong performance in the past year, there are some concerns about its long-term growth. Investors may want to hold onto their stocks for now and keep an eye on the company's future performance.