Puretrop Fruits Limited

Consumer Defensive — Food Distribution · BSE

₹176.80−₹8.00 (−4.33%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Puretrop Fruits Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Puretrop Fruits Limited engages in the export of processed fruits and vegetables to supermarket chains in India and internationally. It also sells mango, pomegranate, guava, and watermelon pulps and concentrates; and cold extracted fruit/vegetable juices and nut milk.

IndustryFood Distribution

SectorConsumer Defensive

Employees110

Annual revenue₹120 Cr

How does it make money?

Turns over ₹120 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 110 employees supports ₹1.10 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.10 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved +163% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+13%

Margin effect+163%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.10 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.2x

3Y Median

10.4x

40 monthly readings · mean 10.1x · range 1.9x–22.5x

Sector Median

43.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 10.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 74% below the peer median of 43.3x.

vs. its own history

Fair

10.4x median over 40 months · +8%

vs. sector peers

Cheap

43.3x median of 4 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.2x

PEG

0.26

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 95% over 3 years.
Cash generation is improving
Free cash flow is up 177% over 3 years.
Return on equity is rising
ROE has improved from 10.3% to 18.3%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 95% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.3% CAGR
Latest reported year was 0.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹23 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹121 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.2x

Cheap

Cheap against the generic band

P/B Ratio

1.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹15.72

Profitable

Profitable on a per-share basis

ROE

18.3%

Strong

Strong capital efficiency

ROCE

7.1%

Weak

Low return on total capital employed

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.3%

Modest

Modest growth

Profit Growth (YoY)

-65.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹23 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.8%

Average

Average margins

Net Margin

11.9%

Good

Strong bottom-line conversion

Current Ratio

9.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

181.7 / 172.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹106 Cr	₹105 Cr	₹110 Cr	₹120 Cr	+4.3%
EBITDA	₹10 Cr	-₹1 Cr	-₹5 Cr	₹13 Cr	+8.5%
EBITDA Margin	9.8%	-0.7%	-4.8%	11.0%	—
PAT (Net Profit)	₹8 Cr	₹60 Cr	₹12 Cr	₹25 Cr	+44.0%
EPS	₹8.03	₹60.59	₹14.92	₹31.73	+58.1%
ROE	10.3%	42.2%	10.5%	18.3%	—
ROCE	6.2%	-4.1%	-7.2%	7.1%	—
Total Debt	₹21 Cr	₹6 Cr	₹4 Cr	₹1 Cr	-62.8%
Free Cash Flow	₹8 Cr	₹66 Cr	₹20 Cr	₹23 Cr	+40.4%

🟢 Revenue has grown at 4.3% a year over 3 years.

🟢 EBITDA has grown at 8.5% a year over 3 years.

🟢 EBITDA Margin has risen from 9.8% to 11.0% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 44.0% a year over 3 years.

🟢 EPS has grown at 58.1% a year over 3 years.

🟢 ROE has risen from 10.3% to 18.3% over 3 years (+8.1 pts).

🟡 ROCE has held roughly flat at 7.1% over 3 years.

🟢 Total Debt has shrunk at 62.8% a year over 3 years.

🟢 Free Cash Flow has grown at 40.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹152 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.7%

Corporate Actions

Ex-Dividend Date

21 Sept 2016

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

3 positive2 mixed1 general

Puretrop Fruits Completes ₹22 Crore Buyback of 11 Lakh Shares at ₹200 Per Share

scanx.trade, 14 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Puretrop Fruits Share Price News: today’s gain and ratios

Univest, 17 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Puretrop Fruits net profit up 113% to ₹2,529 lakh in FY26 on revenue growth

scanx.trade, 17 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Puretrop Fruits Publishes Comprehensive Buyback Public Announcement

scanx.trade, 23 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Puretrop Fruits (BSE:530077) - Stock Analysis

Simply Wall Street, 21 Oct

Puretrop Fruits Limited Reports Audited Financial Results for Quarter and Year Ended March 31, 2026

scanx.trade, 12 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑