Freshtrop Fruits Ltd


(Anand Patel) #81

If Britain gets the same treatment in terms of Free Tariff and Free Movement of persons, not much will change for India. However, if Britain gets the treatment as applicable to a non-member country, it may lead to positive impact on India’s exports to EU as well as to Britain,” Ralhan said
…link http://m.thehindu.com/business/Economy/free-trade-talks-with-eu-to-be-modified/article8769711.ece

I think India will be in sweet spot due to brexit. Short term currency fluctuations could be painful, but on longer run, things look okay at this point of time.
For Freshtrop, many other variables to watchout for…no need to unnecessarily hype brexit, except currency swings making hedge difficult.
Geographical diversification and processed food division progress is happening.


(Rajeev Jawahar) #82

Can anyone shed more light on what % of Sales goes to the UK? Attaching the last AR. Going by the AR, it doesn’t seem like a great deal, though I can’t be sure. The Co. hopes to grow in excess of 20% per annum for the next few years & is looking to China & Russia for added growth.

The food processing business too is a thrust area, though the base is small.

Disc: Invested

Freshtrop 14-15.pdf (1.2 MB)


(Billu) #83

Brexit should be helpful is lessening risks due to export bans.

If you’re exporting to EU and fruitflies were found in your fruit in (warm) Spain, you’re banned from Espana to Estonia. After brexit, the british authorities will take another look at the situation which would be different from EU authorities.

So this distributes the uncertaintyl.


(sn123) #84

Noticed something very odd today. The Piotroski score as calculated on screener.in has dropped from 8 to 2 after the results update (https://www.screener.in/company/530077/) . Whereas on ValueResearchOnline (https://www.valueresearchonline.com/stocks/snapshot.asp?code=1192), the Piotroski is reported as 9.

So decided to try to calculate this myself as an excercise from the numbers on Moneycontrol.

Results based on March 2016 quarter.

  1. Positive net income compared to last year: Yes
  2. Positive operating cash flow in the current year: Yes
  3. Higher return on assets (ROA) in the current period compared to the ROA in the previous year: Yes
  4. Cash flow from operations greater than Net Income: Yes
  5. Lower ratio of long term debt to equity in the current period compared to value in the previous year: Yes.
  6. Higher current ratio this year compared to the previous year: Yes
  7. No new shares were issued in the last year: Yes
  8. A higher gross margin compared to the previous year: No
  9. A higher asset turnover ratio compared to the previous year: No

This gives a Piotroski score of 7!

I understand this is quite a simplistic analysis and I might be wrong. However, the more I look at the look at the ratios on screener.in and moneycontrol, the more discrepancies I find. Is this because different methodologies are used? Or the data on screener.in is more up-to-date?

Either way, would like to know why all of a sudden the Piotroski score dropped from 8 to 2 on screener.in after the latest results update. 2016 AR is not out yet.


(J2EE Professional) #85

today the stock has given a strong breakout on back of some serious volumes. any news?


(SecretInvestor) #86

Management has clearly said their profits will rise 50% in the Annual report. Also they have given their growth plans.

Lastly, they have been scooping up shares from open market.

Good recipe.


(amberjain2001) #87

@secretinvestor from where u got this info???


(sn123) #88

@secretinvestor Can you quote the page in AR2016 as well please.


(J2EE Professional) #89

actually, its not really a big deal because the entire statement is a copy paste from AR14, which was copied in AR15 and now AR16. So take it with a pinch of salt. though increasing promoter stake is positive.


(us121) #90

Very True. i got these stocks from IPO many many years back and sold out as well long time back. but is see all these news proping up only when market is moving up and than it is business as usual with nothing remarkable to talk abbout.


(J2EE Professional) #91

ok but having said that, charts are signalling an impending strong upmove.


(saumilshah) #92

promoters constantly increasing stake…already in this quarter promoters have bought about 1% shares from open market…approx 115000 shares bought from october till date…Future looks promising.
Disc : I have taken small position today.


(J2EE Professional) #93

why they are not disclosing it on the exchanges?


(saumilshah) #94

check below link :
http://www.bseindia.com/stock-share-price/stockreach_insidertrade_new.aspx?scripcode=530077&expandable=2


(J2EE Professional) #95

thanks. puzzled though that why this does not have the declaration. normally this is always updated. but thanks anyways. appreciate it.


(atulgupta80) #96

i have noted that promoter quite often trade in shares to ride in and out when price fall and rise.


(eyesice) #97

Is anyone still invested on this counter? Looking at the technicals, it seems accumulation is happening for the past 6 months in this stock. Has anything changed fundamentally? Has promoter holding increased?

@bheeshma Can you provide your views on this chart?


(Bheeshma Sanghani) #98

Just eyeballed from the pic posted here. The green horizontal line seems to be the resistance. Prices have tried to break it several times but havent been able to do it. That indicates bearishness. A weekly chart should throw some better clarity. I think prices will poke up before finally heading down to test the resistance. Look for decisive breaks upward or downward before taking a call.


(eyesice) #99

This is indeed a weekly chart. The green line indicates the last traded price. After almost 2 years of consolidation the prices seem to be moving up. Hence thought of posting this and getting your feedback

Thanks!


(Bheeshma Sanghani) #100

Sorry about that i thought it was a daily chart as many stocks have formed this pattern on a daily and have moved downward so i automatically extrapolated to this chart.

At a weekly level your outlook depends upon how you perceive the chart. Most of the sales for freshtrop happen in the first 6 months of the FY. The March 17 data is not out yet. The margins for quarter ended march have been reducing ( a quick scan from screener ) - March 15 quarter OPM was 41.74% and March 16 was 37.61%.

Also i remember reading in the AR some time ago that more than ~70% of their revenue come from thompson seedless grapes.

If you look at the NHB data for 2015-2016 ( the latest that is available on their website ). The production of grapes has gone down from 2823000 MT in 2015 to 2597000 MT in 2016

Link - http://nhb.gov.in/PDFViwer.aspx?enc=3ZOO8K5CzcdC/Yq6HcdIxC0U1kZZenFuNVXacDLxz28=

Coming back to the technical chart - There is also a case for a broadening formation ( which is how i would look at it ).

In my opinion, this is a bearish chart. I would wait for the march data to confirm my views and then make the necessary moves.

Disc - Not invested