HMA Agro Industries Ltd Falls to 52-Week Low Amidst Continued Downtrend

Stock Performance and Market Context

On 12 Jan 2026, HMA Agro Industries Ltd recorded its lowest price in the past year at Rs.26.8, a level not seen before in its trading history. This new low comes after the stock has consecutively declined over the last five trading sessions, resulting in a cumulative loss of 7.73% during this period. The day’s performance also showed a decline of 1.15%, underperforming the FMCG sector by 1.49%.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum. This contrasts with the broader market, where the Sensex recovered from an initial negative opening to close marginally higher at 83,596.42, just 3.07% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market gains, while HMA Agro Industries Ltd lagged behind.

Long-Term and Recent Performance Metrics

Over the past year, HMA Agro Industries Ltd has delivered a negative return of 29.66%, significantly underperforming the Sensex, which posted an 8.02% gain over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting a consistent pattern of below-par performance.

The 52-week high for the stock was Rs.40, underscoring the extent of the decline to the current low of Rs.26.8. This represents a drop of approximately 33% from its peak price within the last year.

Fundamental Factors Affecting Valuation

HMA Agro Industries Ltd’s current Mojo Score stands at 37.0, with a Mojo Grade of Sell, reflecting a downgrade from its previous Strong Sell rating on 17 Nov 2025. The company’s market capitalisation grade is rated at 3, indicating a relatively modest market cap within its sector.

One of the key concerns is the company’s weak long-term fundamental strength, evidenced by a negative compound annual growth rate (CAGR) of -11.50% in operating profits over the last five years. This decline in profitability has weighed heavily on investor sentiment and valuation.

The company’s ability to service its debt remains limited, with a high Debt to EBITDA ratio of 3.53 times. This elevated leverage ratio suggests increased financial risk and potential constraints on capital allocation.

Profitability metrics also highlight challenges, with an average Return on Capital Employed (ROCE) of 7.28%, signalling relatively low returns generated per unit of capital invested, including both equity and debt.

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

Recent Quarterly Results and Valuation Insights

In contrast to the broader negative trend, the company reported very positive quarterly results in September 2025. Net sales reached a record high of Rs.2,155.34 crore, while PBDIT (Profit Before Depreciation, Interest and Taxes) also hit a peak of Rs.95.46 crore. The operating profit margin to net sales improved to 4.43%, the highest recorded in recent quarters.

These results contributed to a net profit growth of 14,865%, a remarkable increase that stands out amid the company’s otherwise subdued performance.

Valuation metrics suggest the stock is trading at an attractive level relative to its capital employed, with a ROCE of 7.9 and an enterprise value to capital employed ratio of 1.4. The stock’s price-to-earnings growth (PEG) ratio is 0.5, indicating that the market valuation is low compared to the company’s profit growth of 23.7% over the past year.

Summary of Key Concerns and Market Position

HMA Agro Industries Ltd’s recent decline to a 52-week low reflects a combination of subdued long-term growth, elevated leverage, and modest profitability metrics. The stock’s consistent underperformance relative to the Sensex and its sector peers underscores the challenges faced by the company in maintaining investor confidence.

While recent quarterly results have shown some improvement in sales and profitability, these have yet to translate into a sustained positive trend in the stock price or broader market sentiment. The absence of domestic mutual fund holdings further highlights the cautious stance taken by institutional investors.

Overall, the stock remains positioned below critical technical levels and continues to face headwinds from its fundamental profile, as reflected in its current Mojo Grade of Sell.

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