10:1 Stock Split: High ROE & High ROCE Penny Stock Under Rs 55 in Green; Promoters to Acquire via Gift Deed

The shares of the company have an ROE of 32 per cent and an ROCE of 28 per cent.

Today, the shares of HMA Agro Industries Ltd gained 1.2 per cent to Rs 51.40 from its previous closing of Rs 50.81. The stock’s 52-week high is Rs 84 and its 52-week low of Rs 48.

HMA Agro Industries Limited has received notifications from several promoters and their immediate relatives, intending to acquire shares of the company through gift deeds. The proposed transactions are scheduled to take place on or after September 6, 2024. The acquirers, Zulfiqar Ahmad Qureshi, Mohammad Ashraf Qureshi and Mohammad Mehmood Qureshi will each receive 2,71,50,471 shares (a total of 8,14,51,413 shares or 16.26 per cent) from Wajid Ahmed. This inter-family transfer of shares is exempt from the requirements of SEBI (SAST) Regulations, 2011, as it falls under the category of transactions between promoters and their immediate relatives. The aggregate holding of the promoter group will remain unchanged before and after these transactions.

Additionally, the company signed facilities agreements with ALM Food Products Limited (ALM Food) in Punjab and ALM Industries Limited (ALM) in Saharanpur to expand their business in processing frozen halal boneless buffalo meat. ALM Food has a processing capacity of 211.50 MT per day and ALM has a capacity of 84.60 MT per day. The agreements are for three years starting from August 1, 2024, with a one-year lock-in period. ALM Food and ALM will be responsible for obtaining all necessary processing certificates and insuring their manufacturing facilities at their own cost.

Furthermore, CRISIL Ratings reaffirmed HMA Agro Industries Ltd.'s (HMA) long-term bank facility rating at ‘CRISIL A-/Stable’ despite an increase in the facility amount from Rs 400 crore to Rs 500 crore. This reflects HMA group's strong market position in meat processing, healthy finances with low debt, and expectation of continued growth. Furthermore, the shares of the company ex-traded stock split of equity shares having a face value of Rs 10 to Rs 1 on the ex-date which was December 29, 2023.

About the Company

HMA Agro Industries Ltd, founded in 2008, is a leading Indian food trade company specializing in handling and exporting a variety of food and agricultural products. They are one of the biggest exporters of frozen buffalo meat in India, accounting for over 10 per cent of the nation's total exports in this category. Their offerings include frozen fresh buffalo meat, prepared and frozen natural products, vegetables, and cereals. The company's brands "Black Gold", "Kamil", and "HMA" are shipped to over 40 countries around the world. HMA Agro Industries has a strong focus on meat processing, operating four integrated plants in Aligarh, Mohali, Agra, and Parbhani, with plans to expand by setting up a fifth facility in Haryana.

The company has a market cap of over Rs 2,500 crore. The shares of the company have an ROE of 32 per cent and an ROCE of 28 per cent. Investors should keep an eye on this small-cap stock.

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

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