Stock Performance Overview

On 19 Jan 2026, HMA Agro Industries Ltd’s share price fell by 1.55%, underperforming the Sensex’s decline of 0.68%. This marks the third consecutive day of losses, with the stock declining by 3.83% over this period. The downward momentum extends beyond the short term, with the stock posting a 4.40% loss over the past week and an 8.37% decline in the last month. Over three months, the stock has fallen 10.82%, significantly lagging the Sensex’s modest 1.13% drop.

Longer-term figures reveal a more pronounced disparity. Over the past year, HMA Agro Industries Ltd has delivered a negative return of 29.83%, while the Sensex has gained 8.33%. Year-to-date performance also shows the stock down 8.09%, compared to the Sensex’s 2.60% decline. Notably, the stock has not recorded any gains over three, five, or ten-year periods, remaining flat at 0.00%, whereas the Sensex has appreciated by 36.39%, 68.03%, and 239.07% respectively over these intervals.

The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained bearish trend.

Financial and Fundamental Assessment

HMA Agro Industries Ltd operates within the FMCG sector, an area typically characterised by steady demand and growth. However, the company’s financial indicators reveal areas of concern. The MarketsMOJO Mojo Score stands at 37.0, with a Mojo Grade of Sell, reflecting a downgrade from a previous Strong Sell rating on 17 Nov 2025. The Market Cap Grade is rated at 3, indicating a relatively modest market capitalisation within its peer group.

One of the key factors influencing the negative outlook is the company’s weak long-term fundamental strength. Operating profits have contracted at a compound annual growth rate (CAGR) of -11.50% over the last five years. This decline in profitability is compounded by a high Debt to EBITDA ratio of 3.53 times, signalling limited capacity to comfortably service debt obligations.

Return on Capital Employed (ROCE) averages 7.28%, a figure that suggests low profitability relative to the total capital invested, including both equity and debt. This level of return is below what is typically expected for companies in the FMCG sector, which often benefit from higher capital efficiency.

Despite the company’s size, domestic mutual funds hold no stake in HMA Agro Industries Ltd. Given that mutual funds often conduct thorough research before investing, their absence may reflect reservations about the company’s valuation or business prospects at current price levels.

Comparative Market Performance

HMA Agro Industries Ltd’s underperformance is evident when compared to the BSE500 index and its sector peers. The stock has lagged behind the BSE500 over the last three years, one year, and three months. This persistent underperformance highlights the company’s challenges in maintaining competitive positioning within the FMCG sector.

Sector performance has outpaced the stock consistently, with HMA Agro Industries Ltd underperforming its sector by 1.14% on the day of the all-time low. This gap underscores the stock’s relative weakness amid broader sector trends.

Recent Quarterly Financial Highlights

Despite the overall negative trend in share price, the company reported some notable improvements in its latest quarterly results. Net profit surged by 14,865%, a very positive development for the period ending September 2025. Profit Before Tax excluding Other Income (PBT LESS OI) reached Rs. 80.91 crores, representing a growth of 747.9% compared to the previous four-quarter average.

Net sales for the quarter stood at Rs. 2,155.34 crores, up 55.5% relative to the prior four-quarter average. The company also recorded its highest-ever PBDIT at Rs. 95.46 crores during this period.

These figures indicate pockets of operational improvement, although they have yet to translate into sustained positive momentum in the stock price or long-term financial metrics.

Valuation and Profitability Metrics

HMA Agro Industries Ltd’s valuation metrics present a mixed picture. The company’s ROCE improved slightly to 7.9% in the recent quarter, and it currently trades at an enterprise value to capital employed ratio of 1.4, which is considered very attractive relative to peers. The stock is trading at a discount compared to the average historical valuations of its FMCG sector counterparts.

Over the past year, while the stock price has declined by 29.83%, the company’s profits have increased by 23.7%. This disparity results in a PEG ratio of 0.5, suggesting that the stock’s valuation is low relative to its earnings growth.

Summary of Key Challenges

The stock’s all-time low price reflects a combination of factors including weak long-term growth in operating profits, limited debt servicing capacity, and below-average returns on capital. The absence of domestic mutual fund holdings further highlights a cautious stance from institutional investors.

While recent quarterly results show significant improvements in profitability and sales, these have not yet reversed the broader negative trend in the stock’s market performance. The company’s valuation remains attractive on certain metrics, but this has not translated into price appreciation.

Overall, HMA Agro Industries Ltd’s current market position is characterised by sustained price weakness and underperformance relative to benchmarks and sector peers.

Unlock special upgrade rates for a limited period. Start Saving Now →