Freshtrop Fruits has been volatile for few days now. The stock breached the lower circuit for the past few days and since 21st, it turned around and started breaching the upper circuit. Today too, it hit the 5% upper circuit at Rs.101.50 the moment it opened for trading.

The stock continues to react to the news it announced on 21st – the company clarified that unseasonal rainfall has affected its grape export business. The total exports of grapes for the season would be 30 to 35% less than last year but there has been a significant improvement in the selling price. The company has stated that unseasonal rainfall will have not any significant effect on the profit of the Company for 2014-15. The effect will be there in Q1 of 2015-16 but this could be mitigated by better price realization.

Based in Gujarat, the company is a supplier of grapes and pomegranates from India to supermarkets in Europe for more than a decade supplying to leading supermarkets like ASDA, Tesco, Marks & Spencer, Albert Hynes,DelHaize, Carrefour, Migros and several others.