HMA Agro Industries Ltd Falls to 52-Week Low of Rs.25.05

Stock Price Movement and Market Context

On 29 Jan 2026, HMA Agro Industries Ltd’s share price reached its lowest level in the past year, closing at Rs.25.05. This represents a sharp fall from its 52-week high of Rs.40, indicating a depreciation of approximately 37.4% over the period. Despite this decline, the stock marginally outperformed its sector by 0.74% on the day, though it remains substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness in price trends highlights the stock’s struggle to regain momentum.

In contrast, the broader market has shown resilience. The Sensex opened flat but gained 0.27% to trade at 82,566.37, remaining just 4.35% shy of its 52-week high of 86,159.02. Mega-cap stocks have led this rally, while the Sensex itself trades below its 50-day moving average, which remains above its 200-day moving average, signalling a cautiously optimistic market environment. Against this backdrop, HMA Agro’s underperformance is particularly notable.

Financial Performance and Fundamental Metrics

HMA Agro Industries Ltd’s financial indicators reveal several areas of concern. The company has experienced a negative compound annual growth rate (CAGR) of -11.50% in operating profits over the last five years, reflecting a sustained decline in core earnings. This weak long-term growth trajectory is compounded by a high Debt to EBITDA ratio of 3.53 times, indicating limited capacity to comfortably service its debt obligations.

Profitability metrics also remain subdued. The average Return on Capital Employed (ROCE) stands at 7.28%, which is modest given the capital intensity of the FMCG sector. This figure suggests that the company is generating relatively low returns on the total capital invested, including both equity and debt. Such returns may be insufficient to attract significant institutional interest, as evidenced by the absence of domestic mutual fund holdings in the stock.

Relative Performance and Market Perception

Over the last year, HMA Agro Industries Ltd has delivered a total return of -29.85%, significantly lagging behind the Sensex’s positive 7.88% return over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring a consistent pattern of below-par performance.

The company’s modest market capitalisation is reflected in its Market Cap Grade of 3, while its overall Mojo Score stands at 37.0, with a current Mojo Grade of Sell. This represents an upgrade from a previous Strong Sell rating issued on 17 Nov 2025, signalling some improvement in outlook, albeit from a low base.

Recent Quarterly Results and Valuation Metrics

Despite the broader challenges, HMA Agro Industries Ltd reported a remarkable surge in net profit growth of 14,865% in the quarter ending September 2025. Profit Before Tax excluding Other Income (PBT LESS OI) reached Rs.80.91 crores, growing by 747.9% compared to the previous four-quarter average. Net sales for the quarter stood at Rs.2,155.34 crores, up 55.5% against the same benchmark, while Profit Before Depreciation, Interest and Tax (PBDIT) hit a quarterly high of Rs.95.46 crores.

These results contributed to a slightly improved ROCE of 7.9% and an attractive valuation metric, with an Enterprise Value to Capital Employed ratio of 1.3. The stock currently trades at a discount relative to its peers’ historical valuations, supported by a PEG ratio of 0.4, reflecting the relationship between its price-to-earnings ratio and earnings growth rate.

Liquidity and Institutional Interest

Institutional participation remains limited, with domestic mutual funds holding no stake in the company. Given their capacity for detailed research and due diligence, this absence may indicate a cautious stance towards the stock’s valuation or business fundamentals.

Summary of Key Financial and Market Indicators

HMA Agro Industries Ltd’s current market valuation and financial metrics present a mixed picture. While recent quarterly results show significant profit growth and improved sales, the company’s long-term earnings trajectory remains negative. The stock’s trading below all major moving averages and its 52-week low price of Rs.25.05 reflect ongoing market concerns.

The company’s leverage, as indicated by a Debt to EBITDA ratio of 3.53 times, and modest ROCE of 7.28% highlight challenges in generating strong returns on capital. The lack of institutional ownership further underscores the cautious sentiment surrounding the stock.

In comparison, the broader market and FMCG sector have demonstrated relative strength, with the Sensex nearing its 52-week high and mega-cap stocks leading gains. This divergence emphasises the stock’s current position as an underperformer within its sector and the wider market.

Conclusion

HMA Agro Industries Ltd’s fall to a 52-week low of Rs.25.05 encapsulates a period of sustained underperformance and valuation pressures. Despite encouraging quarterly profit growth and attractive valuation ratios, the company faces challenges related to long-term earnings decline, debt servicing capacity, and limited institutional interest. These factors collectively contribute to the stock’s subdued market standing as of late January 2026.

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