Stock Split From Rs 10 to Re 1 in FY24: High ROE & high ROCE penny stock below Rs 65; Company announces financial performance for the year ended March 31, 2024

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

On Thursday, the shares of HMA Agro Industries Ltd plunged 0.05 per cent to Rs 54.85 from its previous closing of Rs 54.88 with an intraday high of Rs 55.50 and an intraday low of Rs 54. The stock’s 52-week high is Rs 84 and its 52-week low of Rs 48.51.

HMA Agro Industries Limited is pleased to announce its financial results for the fiscal year ending March 2024. The company has achieved a remarkable increase in revenue, demonstrating robust growth and resilience amidst challenging market conditions.

Financial Highlights

Consolidated Basis: Revenue increased from Rs 3,209.22 crore in March 2023 to Rs 4813.29 crore in March 2024, representing a significant 49.98 per cent growth.

Standalone Basis: Revenue grew from Rs 3,125.55 crore in March 2023 to Rs 4,665.05 crore in March 2024, an impressive 49.25 per cent increase.

Quarter-on-Quarter (QoQ) Performance

Consolidated Basis: Revenue for the last quarter of March 2023 rose from Rs 838.74 crore to Rs 1,390.14 crore in the March 2024 quarter, marking a substantial 65.74 per cent increase.

Standalone Basis: Revenue for the last quarter of March 2023 increased from Rs 880.97 crore to Rs 1,317.41 crore in the March 2024 quarter, a significant 49.54 per cent growth.

Profit Margin Analysis: Despite the impressive revenue growth, the company experienced a decline in profit margins. This downturn is attributed to the increased domestic prices of raw materials and the impact of the Red Sea crisis. However, the management remains optimistic about the future and anticipates an improvement in profit margins as international conditions stabilize.

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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.

Earlier, 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.

The company has a market cap of over Rs 2,700 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.