Recent Price Movement and Market Context
On 21 Jan 2026, HMA Agro Industries Ltd recorded a closing price of Rs.25.75, the lowest level ever observed for the stock. This price point represents a continuation of a five-day losing streak, during which the stock has declined by 6.58%. The day’s performance showed a modest fall of 0.42%, underperforming the Sensex’s marginal dip of 0.09% and lagging the FMCG sector by 0.84%.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Over various time frames, the stock’s returns have been notably weaker than benchmark indices: a 1-month return of -10.33% versus Sensex’s -3.33%, a 3-month return of -14.41% against Sensex’s -2.75%, and a 1-year return of -32.13% compared to Sensex’s positive 8.26%.
Longer-term performance also highlights the stock’s challenges, with zero returns over the past three, five, and ten years, while the Sensex has delivered gains of 35.44%, 65.45%, and 242.64% respectively over the same periods.
Financial Metrics 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 last five years, indicating weakening profitability trends. Additionally, the firm’s debt servicing capacity is constrained, with a Debt to EBITDA ratio of 3.53 times, reflecting elevated leverage relative to earnings.
The average Return on Capital Employed (ROCE) stands at 7.28%, a figure that suggests limited efficiency in generating profits from the total capital base comprising equity and debt. This level of profitability is modest when compared to typical FMCG sector benchmarks.
Notably, domestic mutual funds hold no stake in the company, which may imply a lack of confidence or preference for alternative investment opportunities within the sector.
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Comparative Performance and Market Position
HMA Agro Industries Ltd’s stock has consistently underperformed the BSE500 index over the last three years, one year, and three months. The year-to-date return of -10.05% further underscores the stock’s relative weakness compared to the Sensex’s -3.66% decline during the same period.
The company’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 17 Nov 2025. The Market Cap Grade is rated at 3, reflecting the company’s mid-tier market capitalisation status within the FMCG sector.
Recent Quarterly Financial Highlights
Despite the overall downtrend in stock price, the company reported a significant increase in net profit of 14,865% in the quarter ending September 2025. Profit Before Tax excluding Other Income (PBT LESS OI) reached Rs.80.91 crores, growing by 747.9% compared to the previous four-quarter average. Net sales for the quarter stood at Rs.2,155.34 crores, a 55.5% increase over the prior four-quarter average, while Profit Before Depreciation, Interest and Tax (PBDIT) hit a quarterly high of Rs.95.46 crores.
These figures indicate a strong operational quarter, although the stock price has not reflected this improvement.
Valuation and Profitability Metrics
The company’s ROCE for the recent period improved slightly to 7.9%, accompanied by an attractive valuation metric with an Enterprise Value to Capital Employed ratio of 1.3. The stock is trading at a discount relative to its peers’ average historical valuations.
Over the past year, while the stock price declined by 32.13%, the company’s profits increased by 23.7%, resulting in a Price/Earnings to Growth (PEG) ratio of 0.5, which is generally considered low and indicative of valuation support.
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Summary of Key Financial and Market Indicators
HMA Agro Industries Ltd’s recent stock price decline to an all-time low of Rs.25.75 is set against a backdrop of subdued long-term growth, elevated leverage, and modest profitability metrics. The company’s financial results for the latest quarter show marked improvements in sales and profits, yet these have not translated into positive stock price momentum.
The stock’s relative underperformance compared to the Sensex and FMCG sector indices over multiple time horizons highlights the challenges faced by the company in regaining investor confidence and market traction.
While valuation metrics suggest the stock is trading at a discount to peers, the overall financial profile and market positioning continue to reflect a cautious outlook.
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