HMA Agro Industries Ltd Falls to 52-Week Low of Rs.23.55

Intraday Price Movements and Market Context

The stock opened with a gap down of 9.6%, hitting an intraday low of Rs.23.55, which is also the new all-time low for the company. Although it managed to recover somewhat during the session, touching a high of Rs.27.50 (a 5.57% rise from the low), the closing price remained subdued. Notably, the stock outperformed its sector by 4.41% today and has recorded a 7.45% return over the past three consecutive trading days, indicating some short-term resilience despite the fresh low.

From a technical perspective, the share price currently trades above its 5-day and 20-day moving averages but remains below the 50-day, 100-day, and 200-day moving averages. This positioning suggests a mixed momentum scenario, with short-term gains offset by longer-term downward trends.

Meanwhile, the broader market environment has been somewhat cautious. The Sensex opened lower at 83,252.06, down 487.07 points (-0.58%), and is currently trading marginally below its opening level at 83,672.18 (-0.08%). The index remains 2.97% shy of its 52-week high of 86,159.02. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating a nuanced market backdrop.

Long-Term Performance and Fundamental Assessment

Over the past year, HMA Agro Industries Ltd has delivered a return of -28.96%, significantly underperforming the Sensex, which gained 6.48% during the same period. The stock’s 52-week high was Rs.39.97, highlighting the extent of the recent decline.

The company’s long-term fundamentals have been under pressure, with a compounded annual growth rate (CAGR) of -11.50% in operating profits over the last five years. This negative growth trend has weighed on investor sentiment and contributed to the stock’s subdued valuation.

Financial metrics further underline the challenges faced by the company. The debt to EBITDA ratio stands at 3.53 times, indicating a relatively high leverage level and a constrained ability to service debt efficiently. Additionally, the average Return on Capital Employed (ROCE) is 7.28%, reflecting modest profitability relative to the capital invested.

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 suggest reservations about the company’s current valuation or business prospects.

Recent Quarterly Results and Valuation Metrics

In contrast to the longer-term trends, the company reported very positive quarterly results in September 2025. Net profit surged by 14,865%, while profit before tax excluding other income (PBT LESS OI) reached Rs.80.91 crores, growing 747.9% compared to the previous four-quarter average. Net sales for the quarter stood at Rs.2,155.34 crores, a 55.5% increase over the prior four-quarter average, and PBDIT hit a record Rs.95.46 crores.

These figures indicate a strong operational performance in the recent quarter, which contrasts with the stock’s price trajectory. The company’s ROCE improved to 7.9%, and it currently trades at an enterprise value to capital employed ratio of 1.3, suggesting an attractive valuation relative to its capital base.

Despite the stock’s negative return of 28.96% over the past year, profits have risen by 23.7%, resulting in a PEG ratio of 0.5. This low PEG ratio indicates that the stock is trading at a discount relative to its earnings growth, compared to peers’ average historical valuations.

However, the stock has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in maintaining market confidence.

Summary of Key Metrics and Market Position

HMA Agro Industries Ltd currently holds a Mojo Score of 37.0 and a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 17 Nov 2025. The company’s market capitalisation grade is 3, reflecting its mid-tier market size within the FMCG sector.

The stock’s recent performance, including a 5.18% day change and a three-day consecutive gain, contrasts with its longer-term underperformance and fundamental challenges. The juxtaposition of recent strong quarterly results with a declining share price highlights the complex dynamics influencing the stock.

Overall, the stock’s fall to a 52-week low of Rs.23.55 underscores the pressures faced by HMA Agro Industries Ltd in balancing growth, profitability, and market valuation within a competitive FMCG landscape.

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