Stock Performance and Market Context
The stock of HMA Agro Industries Ltd, operating within the FMCG sector, has been on a downward trajectory, falling by 3.11% today and underperforming its sector by 2.43%. This decline extends a recent losing streak, with the stock registering a cumulative return loss of 4.59% over the past two trading days. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In comparison, the broader market has also faced pressure. The Sensex opened 100.91 points lower and is currently trading at 81,373.40, down 0.2%. The index has experienced a three-week consecutive decline, losing 2.64% over this period. Additionally, other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows today, reflecting a cautious market environment.
Over the last year, HMA Agro Industries Ltd has delivered a negative return of 31.84%, starkly contrasting with the Sensex’s positive 7.97% gain. The stock’s 52-week high was Rs.40, underscoring the extent of the recent price erosion.
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Fundamental Analysis and Financial Metrics
HMA Agro Industries Ltd’s long-term fundamentals have shown signs of weakness. 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. Its ability to service debt remains limited, with a high Debt to EBITDA ratio of 3.53 times, suggesting elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation.
Profitability metrics also reflect challenges. The average Return on Capital Employed (ROCE) stands at 7.28%, which is modest and points to limited efficiency in generating returns from the total capital invested. Despite the company’s size, domestic mutual funds hold no stake in HMA Agro Industries Ltd, which may indicate a lack of conviction from institutional investors who typically conduct thorough research before investing.
The stock’s recent performance has been below par not only in the near term but also over longer horizons. It has underperformed the BSE500 index over the last three years, one year, and three months, reinforcing the trend of relative weakness.
Recent Quarterly Results and Valuation Considerations
Contrasting with the stock’s price decline, the company reported very positive quarterly results in September 2025. Net profit surged by an extraordinary 14,865%, while Profit Before Tax excluding Other Income (PBT LESS OI) reached Rs.80.91 crore, growing 747.9% compared to the previous four-quarter average. Net sales for the quarter stood at Rs.2,155.34 crore, up 55.5%, and PBDIT hit a quarterly high of Rs.95.46 crore.
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 1.3. The price-to-earnings growth (PEG) ratio is 0.4, indicating the stock is valued at a discount compared to its peers’ historical averages. Despite these positive financial indicators, the share price has not reflected this improvement, continuing its downward trend.
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Sector and Market Dynamics
The FMCG sector, in which HMA Agro Industries Ltd operates, has faced mixed conditions recently. While some peers have maintained steadier valuations, the company’s stock has lagged behind, reflecting company-specific factors rather than sector-wide trends alone. The broader market’s subdued performance, with key indices hitting lows and trading below important moving averages, has also contributed to the cautious sentiment.
HMA Agro Industries Ltd’s market capitalisation grade is rated at 3, and its overall Mojo Score stands at 37.0, with a current Mojo Grade of Sell. This represents a slight improvement from the previous Strong Sell grade assigned on 17 November 2025, indicating some stabilisation but continued caution.
Summary of Key Metrics
To summarise, the stock’s new 52-week low of Rs.25.3 reflects a combination of sustained price weakness, underperformance relative to benchmarks, and fundamental challenges such as negative operating profit growth and high leverage. Despite recent strong quarterly earnings growth and attractive valuation ratios, the stock remains below all major moving averages and continues to face downward pressure in a cautious market environment.
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