Unfortunately for its shareholders, the Capilano Honey Ltd (ASX: CZZ) share price tumbled to a 52-week low of $14.20 during trade today.
Following today's decline the leading honey producer's shares have now lost around a quarter of their value in the last six months.
Does this make it a buy?
While shares like Capilano Honey, Elders Ltd (ASX: ELD), and Select Harvests Limited (ASX: SHV) have a tendency to trade on lower-than-average multiples, at 13x trailing earnings I think the honey producer represents great value for money for investors.
Especially with the impressive progress the company has made with its exports into China. In its mixed half-year result a key highlight was the almost doubling of sales into the massive Chinese consumer market.
But the company isn't resting on its laurels there. Management is aiming to build on this early success with the launch of an e-commerce website and accompanying social media marketing campaign.
In light of this I expect to see further sales growth in China in the second-half of the current fiscal year.
Further growth could come from its new product launches. Chief among them is its Beeotic prebiotic honey range which has been designed to boost digestive health. With the health and wellness market booming I believe this premium range could be particularly appealing to consumers that use honey for its supposed medicinal benefits.
All in all I believe the company has significant growth ahead of it over the next decade.
For this reason I think Capilano Honey could be a great buy and hold investment option for investors, especially with its shares trading at a 52-week low.
