Freshtrop Fruits Receives 'Hold' Rating and Shows Strong Debt Servicing Ability

Freshtrop Fruits, a microcap company in the FMCG industry, has recently received a 'Hold' rating from MarketsMOJO on February 19, 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 Sideways on February 15, 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, over the past year, the stock has generated a return of 49.24%, 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 its promoters, which can be seen as a positive sign for investors. The company has also consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

However, the company has shown poor long-term growth, with its operating profit declining at an annual rate of -2.80% over the last 5 years. In addition, the company reported negative results in December 2023, with a significant decrease in net sales and profits. Despite these challenges, Freshtrop Fruits remains a promising company in the FMCG industry, with a strong ability to service debt and potential for future growth.