📌 At a Glance
Freshara Agro Exports Ltd (CMP: ₹160, Market Cap: ₹375 Cr.) has quickly gone from a small pickle-preserving startup to an international FMCG player. With strong profitability, rising exports, and impressive ROE, is Freshara the next big thing in Indian agro-exports?
🥒 Chapter 1: The Gherkin Game – Company Overview
Established in 2015, Freshara Agro Exports Ltd (FAEL) specializes in preserved gherkins and pickled vegetables. With global certifications like FSSAI, FDA, Star-K Kosher, APEDA, IFS, and BRCGS, the company has successfully positioned itself as a trusted exporter.
Simply put, they’ve made pickles cool internationally—no small feat!
🎯 Chapter 2: Key Managerial Personnel – The Pickle Gurus
Behind Freshara’s impressive growth is a team that’s mastered international trade dynamics. While management keeps a low public profile, their strategic moves in international certifications and operational efficiency speak loudly.
📊 Chapter 3: Financial Magic – Pickling Profits
Freshara Agro’s financial transformation in five years is remarkable:
- Sales grew from ₹111 Cr (FY22) to ₹251 Cr (FY25), marking an impressive 31% CAGR over 3 years.
- Net profit surged from ₹1 Cr in FY22 to ₹29 Cr by FY25, showing an astounding 210% compounded profit growth.
- EPS dramatically rose from ₹5.86 (FY24) to ₹12.25 (FY25).
| FY | Revenue (₹Cr) | Net Profit (₹Cr) | EPS (₹) |
|---|---|---|---|
| 22 | 111 | 1 | – |
| 23 | 126 | 9 | – |
| 24 | 71 (5m) | 10 | 5.86 |
| 25 | 251 | 29 | 12.25 |
📉 Chapter 4: Balance Sheet – Getting Fresher by the Year
Freshara Agro’s balance sheet has grown steadily:
- Equity expanded notably from ₹17 Cr in FY24 to ₹24 Cr in FY25.
- Borrowings decreased from ₹108 Cr to ₹95 Cr, signaling improved debt management.
- Cash flow, previously strained, turned positive in FY25 with ₹29 Cr net cash flow.
🔮 Chapter 5: Forward-Looking FV Calculation – Crunching Numbers
With a modest P/E of 13, Freshara Agro’s fair value (FV) comfortably ranges between ₹175–₹200. This estimate considers steady revenue growth, sustained high ROE (37.2%), and continued global market penetration.
🌍 Chapter 6: Industry & Growth Outlook – Crunchy Prospects
- Agro-exports Market: International demand for quality Indian agro-products is booming.
- Certification Advantage: Global certifications give Freshara an edge in quality-conscious markets.
- Operational Efficiency: Improved debtor and inventory management reducing debtor days from 396 to 122 significantly boosts liquidity.
🍿 EduInvesting Take – Deliciously Investable?
Freshara Agro Exports is a classic FMCG success story:
- Positives: Exceptional profitability, manageable debt, global market presence.
- Negatives: Dividend policy remains elusive, slight concerns about capitalization of interest.
If management maintains operational discipline, this crunchy pickle story might just become a blockbuster.
🚩 Risks & Red Flags – Sour Grapes?
- Non-payment of dividends despite sustained profitability.
- Possible interest capitalization raising minor audit eyebrows.
🚦 Verdict
Freshara Agro Exports blends profitability and growth seamlessly—making it a tangy treat for your watchlist. But investors, remember: pickles stay crunchy only when preserved correctly.
Author: Prashant Marathe
Date: June 11, 2025
Tags: Freshara Agro Exports, FMCG sector, agro exports, stock analysis, 5-year recap, preserved gherkins, financial analysis, growth stock
