HMA Agro Industries Ltd Falls to 52-Week Low of Rs.25

Stock Performance and Market Context

On 2 Feb 2026, HMA Agro Industries Ltd’s stock price touched Rs.25, its lowest level in the past year and an all-time low. This represents a sharp decline from its 52-week high of Rs.40, translating to a 37.5% drop over the period. The stock has underperformed the broader market, with a one-year return of -37.41%, contrasting with the Sensex’s positive 3.84% gain over the same timeframe.

In the immediate term, the stock has fallen for two consecutive sessions, losing 2.8% cumulatively. Today’s decline of 1.84% also saw the stock underperform the FMCG sector by 0.93%. Notably, HMA Agro is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward pressure.

The broader market environment has also been subdued. The Sensex opened 167.26 points lower and was trading at 80,427.36, down 0.37%. Both the S&P BSE FMCG and NIFTY FMCG indices hit new 52-week lows on the same day, reflecting sector-wide headwinds. While the Sensex remains below its 50-day moving average, the 50DMA itself is positioned above the 200DMA, indicating mixed technical signals at the index level.

Fundamental Analysis and Financial Metrics

HMA Agro Industries Ltd’s long-term fundamentals have been under pressure. The company has experienced a negative compound annual growth rate (CAGR) of -11.50% in operating profits over the past five years, indicating a contraction in core earnings. This weak growth trajectory is reflected in the company’s current Mojo Score of 37.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 17 Nov 2025.

Financial leverage remains a concern, with a high Debt to EBITDA ratio of 3.53 times, suggesting limited capacity to comfortably service debt obligations. The average Return on Capital Employed (ROCE) stands at 7.28%, a modest figure that points to relatively low profitability 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 their ability to conduct detailed research, this absence may indicate a cautious stance towards the company’s valuation or business prospects.

Relative Performance and Valuation Considerations

Over the last three years, the stock has consistently underperformed the BSE500 index, extending to the one-year and three-month periods as well. This persistent lag highlights challenges in regaining investor confidence and market share within the FMCG sector.

However, recent quarterly results have shown some positive developments. For the quarter ending September 2025, the company reported a net profit growth of 14,865%, a remarkable surge driven by a Profit Before Tax (PBT) excluding other income of Rs.80.91 crore, which grew by 747.9% compared to the previous four-quarter average. Net sales for the quarter reached Rs.2,155.34 crore, up 55.5%, while Profit Before Depreciation, Interest and Tax (PBDIT) hit a record Rs.95.46 crore.

Valuation metrics also suggest the stock is trading at a discount relative to its peers. The company’s ROCE improved to 7.9% in the recent quarter, and the enterprise value to capital employed ratio stands at a low 1.3, indicating an attractive valuation on a capital efficiency basis. The Price/Earnings to Growth (PEG) ratio is 0.4, reflecting the stock’s depressed price relative to its earnings growth.

Technical Indicators and Market Sentiment

The stock’s position below all major moving averages underscores a bearish technical stance. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price, signalling sustained selling pressure and a lack of short-term momentum.

Sectoral weakness is also evident, with the FMCG indices hitting 52-week lows alongside HMA Agro Industries Ltd. This broader trend may be influencing the stock’s performance, as investors reassess valuations amid changing market dynamics.

While the Sensex’s technical indicators show some resilience, with the 50-day moving average above the 200-day, the index’s current position below the 50DMA suggests caution in the near term.

Summary of Key Metrics

To summarise, HMA Agro Industries Ltd’s stock has declined to Rs.25, its lowest level in a year, reflecting a combination of weak long-term growth, high leverage, and subdued profitability. Despite recent strong quarterly profit growth and attractive valuation ratios, the stock continues to face downward pressure amid sectoral challenges and technical weakness.

Investors monitoring the stock will note the divergence between improving quarterly earnings and the persistent negative price trend, highlighting the complex interplay of fundamentals and market sentiment in shaping the stock’s trajectory.

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