MULTI BAGGERS: FRESHTROP FRUITS

PN Vijay, Investment Advisor

Freshtrop Fruits : Reco Price Rs. 114.75 CMP: Rs.114.15 (Loss 0.52%)

Freshtrop is a company engaged in export of processed fruits with it operations mainly in Maharashtra. There is enormous potential for fruit exports from India and tremendous government support for the industry.
Freshtrop Fruit Ltd
Freshtrop is a company engaged in export of processed fruits with it operations mainly in Maharashtra. It supplies to leading hyper markets all over the world. Grapes account for 75% of its exports and in fact Freshtrop accounts for almost 10% of Indian grape exports. Other fruits include mangoes, pomegranates.
Why I like it
1. Enormous potential for fruit exports from India.
2. Tremendous Government support for the industry
3. Healthy margins and an impressive CAGR
4. Attractive valuations. It quotes around 7 times its annualized 2006-07 earnings
Triggers
Huge capacity addition in Gujarat.
Possible interest by large overseas players
Concerns
Relatively unknown promoters
Target
Rs 200 in 6 months .