Low PE, High ROE & ROCE stock: This small-cap company reports a 333 per cent jump in net profit; do you own it?

The shares of the company have a PE of 25.8x whereas the industry PE is 42.3x with an ROE of 30 per cent and a ROCE of 25 per cent.

HMA Agro Industries Limited is a food trade organization for handling food and agro products, including frozen fresh buffalo meat, prepared/frozen natural products, vegetables, and cereals in India.

The company announced its consolidated Quarterly Results ended June 30, 2023. Details below:

• Net sales stood at Rs 980.66 crore, up 16.99 per cent compared to Q4FY23. 
• EBITDA stood at Rs 73.05 crore, up 96.86 per cent compared to Q4FY23. 
• Profit before tax stood at Rs 59.03 crore, up 163.94 per cent compared to Q4FY23.  
• Profit After Tax of Rs 44.31 crore, up 333.19 per cent compared to Q4FY23.  
• The EPS for Q1FY24 is Rs 9.25.

According to the annual results, the net sales increased by 7 per cent to Rs 3,125.55 crore and the net profit increased by 24.46 per cent to Rs 137.32 crore in FY23 compared to FY22.

HMA Agro Industries Ltd has a market cap of over Rs 3,200 crore. The shares of the company have a PE of 25.8x whereas the industry PE is 42.3x with an ROE of 30 per cent and a ROCE of 25 per cent.

On Monday, shares of HMA Agro Industries Ltd surged 2.30 per cent to Rs 638.35 per share from its previous closing of Rs 624. The stock’s 52-week high is Rs 670.45 and its 52-week low is Rs 564.80. The shares of the company saw a spurt in volume by more than 3 times on BSE.

The stock was listed on exchanges (BSE Scrip Code: 543929; NSE Scrip Code: HMAAGRO) on July 07, 2023, at Rs 587.65 per share and to date the stock gave 10.10 per cent to its investors.

Investors should keep an eye on this Small-Cap penny stock.

Disclaimer: The article is for informational purposes only and not investment advice.