HMA Agro Inds. (HMAAGRO)

FairStock Score: 62/100 — STEADY

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Attractive valuation: P/E of 7.63, P/B of 1.62, and PEG of 0.06 point to a low-priced stock relative to earnings and growth.
• Strong recent momentum: sales growth of 41.54% and profit growth of 226.42%, with latest quarter net profit at ₹67 Cr on sales of ₹2,059 Cr.
• High promoter holding of 81.63% aligns management interests with minority shareholders.
• Fundamental health is decent: Piotroski F-Score of 7/9, ROE of 14.20%, and dividend yield of 1.16%.

Concerns

• Meat processing is a commoditized and cyclical business with limited brand moat and pricing power.
• ROCE of 11.81% suggests only modest returns on total capital employed, limiting long-term compounding.
• Debt/Equity of 0.71 is manageable but not conservative; input costs, disease outbreaks, or trade disruptions could hurt earnings.
• Profit growth of 226.42% is exceptionally high and may normalize sharply if it was partly due to a weak base year.

AI Analysis

I saw HMA Agro at ₹24.58 with a market cap of ₹1,297 crore, book value of ₹15.13 and a P/E of 7.63. That is not an expensive price. But cheapness alone is not enough; I must ask what kind of business I am buying. This is a meat products company, a commodity-like industry where brand moats are often thin and animal disease, regulation and input costs can swing results. The P/B of 1.62 is reasonable, though not a deep Graham bargain. The D/E of 0.71 is manageable but not pristine. The growth figures catch my eye: sales growth of 41.54% and profit growth of 226.42%. The latest quarter showed ₹2,059 crore sales and ₹67 crore net profit. With a PEG of 0.06, the market is pricing in very little earnings growth. But I must remember that high profit growth can come from a low base or from temporary conditions. A Piotroski F-score of 7/9 suggests the balance sheet and operations are healthy, and promoter holding of 81.63% means owners are in the same boat as public shareholders. ROE is 14.20%, acceptable but not wonderful; ROCE is 11.81%, telling me that the company is not generating outsized returns on capital. In a competitive meat industry, that is exactly what I expect. I would not call this a wonderful business with a durable moat; it looks more like a decent operator selling at a low multiple with a profitable base and high growth. The 226% profit growth is unlikely to repeat every year, but buying at 7.63 times earnings with a 1.16% dividend yield gives some margin of safety. If the company can keep growing sales and manage debt and margins, the price is favourable. I need to keep my eye on whether growth continues, or whether the cycle turns. As Graham said, price is what you pay; value is what you get. Here the price is low, but value depends on execution and industry conditions. I would demand sustained evidence before calling it a great compounder.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer