Business Details
Tarai Foods belongs to Food Processing. It is in business of Frozen foods. The Company has vegetable food processing plant in Tarai of Uttarakhand.
It is also selling sweet corn to various distributors in Delhi. It is also planning to launch French Fries as well. Note in past Company had collaboration with international giants like ConAgra for French fries but the tie up ended in year 1998.
But the collaboration will help the Company in its launch. The launch is delayed but past experience will be beneficial. As of now the major products are
- Frozen French Fries
- Frozen Green Peas
- Frozen American Sweet Corn
- Canned Mushrooms
As mentioned earlier the Company have factory located in Tarai and registered office is in Delhi.
Stock Performance
Above is long term price performance chart of the Company. As you can see investors have not made money in long term. The price has ranged between 1 INR and 6 INR. So it is basically a cyclic trading stock which can be bought at lower levels of 1 INR or below 1 INR and sold at 5 INR or above that.
This is based on past price action. It also does not give any dividend which is negative for investors.
My Opinion
Tarai foods is in Food processing sector and offers frozen foods. I personally do like the segment. With majority of population going urban and need of food preservation this sector will see traction in near future.
Having said that in India this trend will pick up with time. Majority of population still likes to have fresh vegetable and fruits. The Company does have collaboration with top multinational companies like Mcdonalds international, Lamb weston and ConAgra for french fries.
This experience will help the Company in its launch and future endeavors but it is worth exploring why the tie ups ended with those top companies.
Price action wise Company has not performed over the years and one must keep an eye on French Fries launch and other endeavors Company is eyeing. Some big companies are also venturing into this space and it is worth exploring them as well.