HMA Agro Industries Ltd Hits All-Time Low Amidst Prolonged Downtrend

Stock Performance and Market Context

On 9 January 2026, HMA Agro Industries Ltd recorded its lowest-ever share price at Rs.27.47, continuing a downward trajectory that has spanned four consecutive trading sessions. Over this period, the stock has declined by 6.19%, underperforming the FMCG sector by 0.27% on the day and significantly trailing the Sensex benchmark. The one-day price change was a marginal fall of 0.07%, compared to the Sensex’s near-flat movement of -0.01%.

Examining the broader time frames, the stock’s underperformance is more pronounced. Over the past week, it has lost 5.55%, while the Sensex declined by only 1.85%. The one-month and three-month returns stand at -5.90% and -7.68% respectively, contrasting with the Sensex’s modest gains of 0.58% and 2.44% over the same periods. The disparity widens further over the last year, with HMA Agro Industries Ltd posting a negative return of 29.10%, while the Sensex appreciated by 8.44%.

Longer-term figures reveal a stagnant performance, with zero returns recorded over three, five, and ten-year horizons, compared to the Sensex’s robust gains of 38.56%, 72.55%, and 237.58% respectively. This stagnation underscores the company’s challenges in generating sustained shareholder value relative to the broader market.

Technical Indicators and Moving Averages

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning signals a persistent bearish trend, with no immediate signs of reversal. Such a pattern often reflects investor caution and a lack of upward momentum in the share price.

Fundamental Assessment and Financial Metrics

HMA Agro Industries Ltd’s fundamental profile remains subdued, as reflected in its MarketsMOJO Mojo Score of 37.0 and a current Mojo Grade of Sell, which was downgraded from Strong Sell on 17 November 2025. The company’s market capitalisation grade stands at a low 3, indicating limited market capitalisation strength relative to peers.

The company’s operating profits have contracted at a compound annual growth rate (CAGR) of -11.50% over the past five years, signalling persistent pressure on core earnings. Additionally, the firm’s ability to service debt is constrained, with a Debt to EBITDA ratio of 3.53 times, suggesting elevated leverage relative to earnings before interest, tax, depreciation, and amortisation.

Profitability metrics also highlight challenges, with an average Return on Capital Employed (ROCE) of 7.28%, indicating modest returns generated per unit of capital invested. Despite this, the company’s recent quarterly results showed some positive signs, with net sales reaching a record Rs.2,155.34 crore and PBDIT hitting Rs.95.46 crore, the highest recorded. The operating profit to net sales ratio also improved to 4.43% in the quarter, reflecting some operational efficiency gains.

Valuation and Shareholding Patterns

Valuation metrics present a mixed picture. The company’s ROCE of 7.9 and an enterprise value to capital employed ratio of 1.4 suggest a very attractive valuation relative to capital utilisation. The stock is trading at a discount compared to its peers’ historical averages, which may reflect market scepticism about its growth prospects.

Notably, domestic mutual funds hold no stake in HMA Agro Industries Ltd, a factor that may indicate limited institutional confidence or interest at current price levels. Given that domestic mutual funds typically conduct thorough research and maintain selective portfolios, their absence from the shareholding structure is a noteworthy aspect of the company’s market positioning.

Comparative Performance and Market Position

HMA Agro Industries Ltd has underperformed not only the Sensex but also the BSE500 index over multiple time frames, including the last three months, one year, and three years. This underperformance highlights the company’s relative weakness within the broader market and its FMCG sector peers.

While the company reported a substantial 14,865% growth in net profit in the September 2025 quarter, this figure is likely influenced by a low base effect or one-off items, given the broader context of declining stock performance and weak long-term fundamentals. Over the past year, despite a 23.7% increase in profits, the stock’s return remained negative at -29.10%, resulting in a PEG ratio of 0.5, which suggests the market is pricing in significant risks or uncertainties.

Summary of Key Financial and Market Indicators

To summarise, HMA Agro Industries Ltd’s stock has reached an unprecedented low of Rs.27.47, reflecting a sustained period of underperformance relative to the FMCG sector and broader market indices. The company’s financial metrics reveal a contraction in operating profits over five years, elevated leverage, and modest returns on capital. Despite recent quarterly improvements in sales and profitability, these have not translated into positive stock performance.

The absence of domestic mutual fund holdings and the downgrade in Mojo Grade to Sell further underscore the cautious market stance towards the company. The stock’s valuation appears attractive on certain metrics, yet the persistent negative returns and technical indicators suggest ongoing challenges in regaining investor confidence.

Overall, the data portrays a company facing significant hurdles in its financial and market performance, as evidenced by its all-time low share price and subdued long-term returns.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →