HMA Agro Industries Ltd Stock Hits All-Time Low Amidst Continued Downtrend

Recent Price Movements and Market Context

On 27 Jan 2026, HMA Agro Industries Ltd’s share price fell by 1.42%, underperforming the Sensex’s modest decline of 0.21%. This drop contributed to a two-day consecutive fall, resulting in a cumulative loss of 3.42% over this short period. The stock also underperformed its FMCG sector by 0.61% on the day.

Over longer durations, the stock’s performance has been notably subdued. It has declined by 2.21% over the past week compared to the Sensex’s 0.99% fall. The one-month return stands at -10.31%, significantly lagging behind the Sensex’s -4.32%. The three-month performance shows a sharper decline of -16.80%, while the Sensex gained 4.02% in the same period.

Year-to-date, HMA Agro Industries Ltd has lost 11.67%, compared with a 4.52% decline in the Sensex. The one-year performance is particularly stark, with the stock down 30.65%, contrasting with the Sensex’s positive return of 7.97%. Over three and five years, the stock has shown no appreciable gains, remaining flat, while the Sensex has delivered 37.14% and 71.63% returns respectively. The ten-year comparison is even more pronounced, with the Sensex up 232.22% and HMA Agro Industries Ltd showing no growth.

Technical indicators further highlight the stock’s weak momentum. It is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent downward pressure.

Fundamental Assessment and Financial Metrics

HMA Agro Industries Ltd operates within the FMCG sector and currently holds a Market Capitalisation Grade of 3, reflecting its mid-tier market cap status. The company’s overall Mojo Score stands at 37.0, with a Mojo Grade of Sell as of 17 Nov 2025, an improvement from a previous Strong Sell rating.

Despite recent positive quarterly results, the company’s long-term fundamentals remain under pressure. Operating profits have contracted at a compound annual growth rate (CAGR) of -11.50% over the past five years, indicating a sustained decline in core profitability.

The company’s ability to service debt is limited, with a Debt to EBITDA ratio of 3.53 times, signalling elevated leverage relative to earnings. Return on Capital Employed (ROCE) averages 7.28%, which is modest and suggests limited efficiency in generating returns from total capital invested.

Notably, domestic mutual funds hold no stake in the company, which may reflect a cautious stance given the company’s financial profile and market performance.

Comparative Performance and Valuation

HMA Agro Industries Ltd has underperformed the broader BSE500 index over multiple periods, including the last three years, one year, and three months. This underperformance is consistent with the stock’s declining price trend and subdued investor sentiment.

However, the company reported a remarkable growth in net profit 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 Rs. 80.91 crores compared to the previous four-quarter average. Net sales for the quarter rose by 55.5% to Rs. 2,155.34 crores, while PBDIT reached a quarterly high of Rs. 95.46 crores.

These results have contributed to a slightly improved ROCE of 7.9% and an attractive valuation metric, with an Enterprise Value to Capital Employed ratio of 1.3. The stock trades at a discount relative to its peers’ historical valuations, and despite a 30.65% decline in share price over the past year, profits have increased by 23.7%, resulting in a PEG ratio of 0.4.

Summary of Key Financial Indicators

The company’s financial profile is characterised by a combination of weak long-term growth, elevated leverage, and modest returns on capital. The Debt to EBITDA ratio of 3.53 times indicates a relatively high debt burden compared to earnings, which may constrain financial flexibility.

Operating profit trends over five years show a negative CAGR of -11.50%, underscoring challenges in sustaining profitability. The average ROCE of 7.28% is below levels typically associated with strong capital efficiency in the FMCG sector.

Despite these factors, recent quarterly results demonstrate significant improvements in profitability and sales, suggesting some operational progress. The company’s valuation metrics, including a low PEG ratio of 0.4 and an Enterprise Value to Capital Employed ratio of 1.3, indicate that the stock is priced attractively relative to earnings growth and capital base.

Nevertheless, the stock’s price trajectory remains subdued, with the new all-time low of Rs. 25.4 reflecting ongoing market caution.

Market Position and Shareholder Composition

HMA Agro Industries Ltd’s market cap grade of 3 places it in the mid-range of market capitalisations within the FMCG sector. The absence of domestic mutual fund holdings is notable, as these institutional investors typically conduct detailed research and maintain positions in companies with favourable prospects. Their lack of exposure may indicate reservations about the company’s current valuation or business outlook.

The stock’s underperformance relative to the Sensex and BSE500 indices over multiple time frames further highlights the challenges faced by the company in delivering shareholder value.

Conclusion

HMA Agro Industries Ltd’s fall to an all-time low price of Rs. 25.4 marks a significant event in its market journey. The stock’s persistent underperformance across short, medium, and long-term horizons, combined with modest financial returns and elevated leverage, characterise the current state of the company’s equity. While recent quarterly results show marked improvements in profitability and sales, the overall market response remains cautious, as reflected in the stock’s valuation and trading below all major moving averages.

Investors and market participants will continue to monitor the company’s financial metrics and market behaviour closely as it navigates this challenging phase.

Unlock special upgrade rates for a limited period. Start Saving Now →