HMA Agro Industries Ltd Falls to 52-Week Low of Rs.27.47

Stock Performance and Market Context

On 9 Jan 2026, HMA Agro Industries Ltd’s share price fell to Rs.27.47, representing its lowest level in the past year and since listing. This decline comes after four consecutive days of losses, during which the stock has delivered a cumulative return of -6.19%. The day’s performance saw the stock underperform its FMCG sector peers by 0.27%, continuing a trend of relative weakness.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. In contrast, the broader Sensex index, despite a negative opening, recovered to close marginally higher at 84,186.38, just 2.34% shy of its 52-week high of 86,159.02. Mid-cap stocks led the market rally, with the BSE Mid Cap index gaining 0.23% on the day, highlighting the divergence between HMA Agro’s performance and broader market trends.

Long-Term and Recent Returns

Over the past year, HMA Agro Industries Ltd has recorded a negative return of -29.10%, substantially underperforming the Sensex’s positive 8.46% 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, indicating a sustained period of underperformance relative to the broader market.

The 52-week high for the stock was Rs.40.61, underscoring the extent of the decline to the current low. This drop reflects a combination of factors affecting the company’s valuation and investor sentiment.

Financial Metrics and Fundamental Assessment

HMA Agro Industries Ltd’s long-term financial indicators reveal challenges that have contributed to its subdued market performance. The company has experienced a negative compound annual growth rate (CAGR) of -11.50% in operating profits over the last five years, reflecting a contraction in core earnings capacity.

Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 3.53 times, indicating elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation. This level of indebtedness can constrain financial flexibility and increase risk perceptions among market participants.

Profitability metrics also highlight limitations, with an average Return on Capital Employed (ROCE) of 7.28%, signalling modest returns generated per unit of capital invested. This figure is below typical benchmarks for the FMCG sector, where capital efficiency is a key driver of valuation.

Despite the company’s size, domestic mutual funds hold no stake in HMA Agro Industries Ltd. Given that mutual funds often conduct detailed research and due diligence, their absence from the shareholding pattern may reflect reservations about the company’s valuation or business prospects at current price levels.

Recent Quarterly Results and Valuation Considerations

In the September 2025 quarter, HMA Agro Industries Ltd reported a significant increase in net profit, rising by 14,865%, which was described as very positive. Net sales for the quarter reached a record high of Rs.2,155.34 crores, while PBDIT (profit before depreciation, interest, and taxes) also hit a peak at Rs.95.46 crores. The operating profit margin to net sales ratio improved to 4.43%, the highest recorded in recent periods.

The company’s ROCE for the quarter stood at 7.9%, accompanied by an attractive valuation metric with an enterprise value to capital employed ratio of 1.4. This suggests that, despite the stock’s price decline, the company is trading at a discount relative to its peers’ historical valuations.

Over the past year, while the stock price has declined by 29.10%, the company’s profits have increased by 23.7%, resulting in a price-to-earnings-growth (PEG) ratio of 0.5. This metric indicates that earnings growth has outpaced the decline in share price, a factor that may be relevant for valuation analysis.

Mojo Score and Market Ratings

According to MarketsMOJO’s assessment, HMA Agro Industries Ltd holds a Mojo Score of 37.0, categorised under a Sell grade as of 17 Nov 2025. This represents an upgrade from a previous Strong Sell rating, reflecting some improvement in the company’s outlook or financial metrics. The market capitalisation grade stands at 3, indicating a modest size relative to other listed companies.

The stock’s day change was recorded at -0.07%, consistent with the ongoing downward pressure on the share price. These ratings and scores provide a quantitative framework for evaluating the company’s market standing and risk profile.

Summary of Key Concerns

The stock’s fall to a 52-week low is underpinned by a combination of factors including weak long-term profit growth, high leverage, and below-average capital returns. The absence of domestic mutual fund holdings further underscores the cautious stance of institutional investors. Despite recent quarterly profit growth and attractive valuation metrics, the stock’s price performance remains subdued, reflecting market apprehensions.

HMA Agro Industries Ltd’s current trading levels, significantly below all major moving averages, highlight the prevailing bearish sentiment. The contrast with broader market indices, which have shown resilience and gains, emphasises the stock’s relative weakness within the FMCG sector and the wider market.

Conclusion

HMA Agro Industries Ltd’s decline to Rs.27.47 marks a notable low point in its share price trajectory over the past year. The company’s financial profile, including profitability and debt metrics, alongside market ratings, provides context for this performance. While recent quarterly results indicate some operational improvements, the stock continues to face challenges reflected in its valuation and market positioning.

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