HMA Agro Industries Faces Declining Profits and Rising Debt Concerns Amidst Stakeholder Confidence Erosion

HMA Agro Industries, a small-cap player in the FMCG sector, has recently undergone an adjustment in evaluation, reflecting the company's ongoing challenges. The latest financial data indicates a flat performance for the quarter ending March 2025, with a profit after tax (PAT) of Rs 13.22 crore, which represents a decline of 29% compared to the previous four-quarter average. Additionally, the company reported a profit before tax (PBT) less other income at a notably low Rs -12.51 crore.
Over the past five years, HMA Agro has experienced a compound annual growth rate (CAGR) of -31.08% in operating profits, highlighting significant long-term fundamental weaknesses. The company's ability to service its debt is also a concern, as evidenced by a high debt-to-EBITDA ratio of 3.73 times. Furthermore, the average return on capital employed (ROCE) stands at 6.72%, indicating low profitability relative to the total capital employed.

Promoter confidence appears to be waning, with a reduction in their stake by 1.98% over the previous quarter, now holding 81.63% of the company. This trend, combined with a return of -42.74% over the last year, underscores the challenges HMA Agro Industries faces in both the near and long term.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.