Stock Price Movement and Market Context
On 1 Feb 2026, HMA Agro Industries Ltd's stock price edged closer to its 52-week low, trading just 2.15% above the lowest price point of ₹25.05. The stock closed the day with a marginal decline of 0.47%, yet it outperformed the FMCG sector by 0.92% on the same session. Despite this relative outperformance, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
The broader market environment was challenging, with the Nifty index closing at 24,825.45, down 495.2 points or 1.96%. The NIFTY FMCG index also hit a new 52-week low on the same day, reflecting sector-wide pressures. Small-cap stocks, including HMA Agro Industries Ltd, were particularly affected, with the Nifty Small Cap 100 index declining by 2.73%.
Long-Term Performance and Relative Comparison
Over the past year, HMA Agro Industries Ltd has delivered a negative return of 30.83%, a stark contrast to the Sensex's positive 5.16% gain during the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring a consistent pattern of underperformance.
The 52-week high for the stock was ₹40.40, indicating a substantial decline of nearly 38% from its peak price. This sustained downward trend highlights the difficulties the company has faced in regaining investor confidence and market traction.
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Fundamental Metrics and Financial Health
HMA Agro Industries Ltd's long-term fundamental strength remains weak, as evidenced by a compound annual growth rate (CAGR) of -11.50% in operating profits over the past five years. This negative growth rate indicates a contraction in core profitability, which has weighed on the stock's valuation and market sentiment.
The company's ability to service its debt is limited, with a high Debt to EBITDA ratio of 3.53 times. This elevated leverage ratio suggests increased financial risk and potential constraints on capital allocation. Furthermore, the average Return on Capital Employed (ROCE) stands at 7.28%, reflecting modest profitability relative to the total capital invested, including both equity and debt.
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 and maintain positions in companies with favourable prospects, their absence may indicate reservations about the company's current valuation or business outlook.
Recent Quarterly Performance Highlights
Contrasting with the broader challenges, 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 ₹80.91 crores, representing a growth of 747.9% compared to the previous four-quarter average. Net sales for the quarter stood at ₹2,155.34 crores, up 55.5% versus the prior four-quarter average, and PBDIT hit a record high of ₹95.46 crores.
These figures suggest pockets of operational strength and revenue expansion, which contrast with the longer-term trends of subdued profitability and stock price performance.
Valuation and Market Perception
The company’s ROCE of 7.9% and an enterprise value to capital employed ratio of 1.3 indicate a valuation that is attractive relative to its peers’ historical averages. The stock is trading at a discount compared to sector counterparts, which may reflect market caution given the company’s financial profile and recent price declines.
Over the past year, while the stock price has declined by 30.83%, profits have increased by 23.7%, resulting in a price-to-earnings-to-growth (PEG) ratio of 0.4. This low PEG ratio typically signals undervaluation relative to earnings growth, although it has not translated into positive price momentum for the stock.
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Mojo Score and Rating Update
According to MarketsMOJO’s assessment, HMA Agro Industries Ltd holds a Mojo Score of 37.0, categorising it within the 'Sell' grade. This represents an upgrade from the previous 'Strong Sell' rating assigned on 17 Nov 2025. The Market Cap Grade is rated at 3, indicating a relatively modest market capitalisation within the FMCG sector.
The rating reflects the company’s ongoing challenges in delivering consistent growth and profitability, despite recent quarterly improvements. The upgrade from Strong Sell to Sell suggests some stabilisation but continues to signal caution for market participants.
Sector and Market Dynamics
The FMCG sector, in which HMA Agro Industries Ltd operates, has experienced notable volatility, with the NIFTY FMCG index reaching a 52-week low concurrently with the stock’s decline. The broader market’s downward pressure, particularly among small-cap stocks, has compounded the stock’s difficulties. While the Nifty index remains below its 50-day moving average, the 50DMA itself is positioned above the 200DMA, indicating mixed technical signals at the market level.
All market capitalisation segments have seen declines, with small caps leading the downturn. This environment has contributed to the stock’s inability to regain upward momentum despite some positive financial results.
Summary of Key Financial and Market Indicators
To summarise, HMA Agro Industries Ltd’s stock has reached a new 52-week low near ₹25.05, reflecting a year-long decline of 30.83%. The company’s financial metrics reveal weak long-term growth, elevated leverage, and modest returns on capital. Recent quarterly results have shown significant profit and sales growth, yet these have not translated into sustained stock price recovery. The stock trades below all major moving averages and remains discounted relative to peers, with a Mojo Score of 37.0 and a Sell rating.
Market conditions in the FMCG sector and broader small-cap space have also weighed on the stock’s performance, contributing to its current valuation and price levels.
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