Recent Price Movement and Market Context
On 12 Jan 2026, HMA Agro Industries Ltd’s share price fell by 2.41%, underperforming the Sensex’s 0.54% decline and the FMCG sector’s movement by 0.94%. This marks the fifth consecutive day of losses, with the stock declining by 7.87% over this period. The current price of Rs.27.21 represents the lowest level ever recorded for the company, underscoring the sustained downward momentum.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a broad-based weakness across multiple timeframes. This technical positioning aligns with the stock’s underperformance relative to the Sensex and BSE500 indices over various periods.
Comparative Performance Analysis
Over the past year, HMA Agro Industries Ltd has delivered a return of -30.56%, starkly contrasting with the Sensex’s positive 7.43% gain. The stock’s year-to-date performance also trails the benchmark, with a decline of 6.75% compared to the Sensex’s 2.46% fall. Longer-term comparisons reveal a lack of growth, with zero returns over three, five, and ten-year horizons, while the Sensex has appreciated by 38.64%, 67.88%, and 236.80% respectively over the same periods.
Shorter-term metrics further highlight the stock’s challenges. In the last three months, HMA Agro Industries Ltd has lost 10.80%, whereas the Sensex gained 0.76%. The one-month and one-week returns of -6.84% and -8.91% respectively also lag behind the Sensex’s 2.51% and 2.71% gains.
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Financial and Fundamental Assessment
HMA Agro Industries Ltd’s financial profile reveals several areas of concern. The company’s operating profits have contracted at a compound annual growth rate (CAGR) of -11.50% over the past five years, indicating a weakening earnings base. This trend is reflected in the company’s low return on capital employed (ROCE), averaging 7.28%, which suggests limited profitability relative to the total capital invested.
Debt servicing capacity is another challenge, with a Debt to EBITDA ratio of 3.53 times. This elevated leverage ratio points to a higher burden of debt relative to earnings before interest, taxes, depreciation, and amortisation, potentially constraining financial flexibility.
Despite the company’s size within the FMCG sector, domestic mutual funds hold no stake in HMA Agro Industries Ltd. Given that mutual funds typically conduct thorough research before investing, their absence may reflect reservations about the company’s valuation or business prospects at current price levels.
Recent Quarterly Performance Highlights
Contrasting with the broader downtrend, the company reported very positive quarterly results in September 2025. Net sales reached a record high of Rs.2,155.34 crores, while PBDIT (profit before depreciation, interest, and taxes) also hit a peak of Rs.95.46 crores. The operating profit margin to net sales improved to 4.43%, the highest recorded for the company.
These results contributed to a net profit growth of 14,865%, a remarkable increase that stands out amid the company’s overall subdued performance. The ROCE for the quarter was 7.9%, and the enterprise value to capital employed ratio was a low 1.4, indicating an attractive valuation relative to capital invested.
Valuation and Market Sentiment
HMA Agro Industries Ltd is currently trading at a discount compared to its peers’ average historical valuations. The company’s price-to-earnings-to-growth (PEG) ratio stands at 0.5, reflecting a low valuation relative to its profit growth of 23.7% over the past year. This valuation metric suggests that the market is pricing in subdued expectations despite recent profit improvements.
The company’s Mojo Score is 37.0, with a Mojo Grade of Sell as of 17 Nov 2025, downgraded from a previous Strong Sell rating. The Market Cap Grade is 3, indicating a relatively modest market capitalisation within its sector.
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Summary of Performance Trends
The stock’s consistent underperformance relative to the Sensex and its sector over multiple timeframes highlights the severity of its current position. The absence of returns over three, five, and ten years contrasts sharply with the broader market’s robust gains, emphasising the company’s stagnation in value creation.
While recent quarterly results show some improvement in sales and profitability metrics, these have yet to translate into sustained positive momentum in the stock price or long-term financial health. The company’s leverage and modest returns on capital continue to weigh on investor sentiment and valuation.
Overall, HMA Agro Industries Ltd’s stock reaching an all-time low reflects a complex interplay of subdued earnings growth, elevated debt levels, and market valuation pressures within the FMCG sector.
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