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

Stock Performance and Market Context

HMA Agro Industries Ltd’s stock closed just 0.67% above its 52-week low of ₹26.5, marking a significant milestone in its price trajectory. The share price has been on a downward trend for four consecutive trading sessions, resulting in a cumulative loss of 4.54% over this period. On 20 Jan 2026, the stock declined by 1.38%, underperforming the Sensex which fell by 0.55% on the same day. Over the past week, the stock has dropped 5.19%, compared to a 1.00% decline in the Sensex, while the one-month and three-month returns stand at -9.06% and -11.78% respectively, both considerably worse than the Sensex’s corresponding declines of -2.52% and -1.86%.

Longer-term performance remains subdued, with the stock delivering a negative return of 32.23% over the last year, in stark contrast to the Sensex’s positive 7.42% gain. Year-to-date, the stock has fallen 8.78%, again underperforming the Sensex’s 2.85% decline. Over three and five years, the stock has shown no appreciable gains, registering 0.00% returns, while the Sensex has advanced 36.57% and 66.27% respectively. The ten-year performance similarly reflects stagnation, with no growth recorded against the Sensex’s 244.07% rise.

Technical Indicators and Moving Averages

Technically, HMA Agro Industries Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates a bearish trend and suggests limited short-term momentum. The stock’s underperformance relative to the FMCG sector, which it trails by 0.42% on the day, further emphasises the challenges faced within its industry segment.

Fundamental Assessment and Financial Metrics

HMA Agro Industries Ltd’s current Mojo Score stands at 37.0, with a Mojo Grade of Sell, reflecting a downgrade from its previous Strong Sell rating as of 17 Nov 2025. The company’s market capitalisation grade is rated 3, indicating a modest market cap relative to peers. The downgrade in rating aligns with the company’s weak long-term fundamental strength, characterised by a negative compound annual growth rate (CAGR) of -11.50% in operating profits over the past five years.

The company’s ability to service debt remains constrained, with a Debt to EBITDA ratio of 3.53 times, signalling elevated leverage levels. Return on Capital Employed (ROCE) averages 7.28%, which is considered low profitability per unit of total capital employed, encompassing both equity and debt. This metric suggests limited efficiency in generating returns from invested capital.

Despite the company’s size within the FMCG sector, domestic mutual funds hold no stake in HMA Agro Industries Ltd. Given that domestic mutual funds typically conduct thorough on-the-ground research, their absence may indicate a cautious stance regarding the company’s valuation or business prospects at current price levels.

Comparative Performance and Market Position

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

However, the company reported a notable surge in net profit growth of 14,865% in the quarter ending September 2025, accompanied by a 747.9% increase in Profit Before Tax excluding Other Income (PBT LESS OI) to ₹80.91 crores compared to the previous four-quarter average. Net sales for the quarter rose by 55.5% to ₹2,155.34 crores, while Profit Before Depreciation, Interest and Tax (PBDIT) reached a quarterly high of ₹95.46 crores.

These results indicate pockets of operational strength despite the broader challenges reflected in the stock price.

Valuation and Profitability Metrics

The company’s ROCE improved slightly to 7.9% in the recent quarter, accompanied by a very attractive valuation metric with an Enterprise Value to Capital Employed ratio of 1.4. The stock currently trades at a discount relative to its peers’ average historical valuations. Over the past year, while the stock price declined by 32.23%, the company’s profits increased by 23.7%, resulting in a Price/Earnings to Growth (PEG) ratio of 0.5, which may suggest undervaluation on a fundamental basis.

Summary of Current Situation

HMA Agro Industries Ltd’s stock reaching an all-time low is a reflection of its prolonged underperformance across multiple time frames and relative to key benchmarks such as the Sensex and BSE500. The company’s financial indicators reveal a mixed picture, with weak long-term growth in operating profits and elevated leverage, contrasted by recent quarterly improvements in profitability and sales.

Trading below all major moving averages and with a downgraded Mojo Grade to Sell, the stock’s price action and fundamental metrics collectively illustrate the severity of the current market valuation. The absence of domestic mutual fund holdings further underscores the cautious market sentiment surrounding the company.

While recent quarterly results show significant growth in profits and sales, these have yet to translate into sustained positive momentum in the stock price or a reversal of the longer-term downtrend. The company’s valuation metrics indicate a discount relative to peers, but this has not been sufficient to arrest the decline in share price to date.

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