High ROE & High ROCE Penny Stock Under Rs 50 Turns Green After Approval of EPC Credit Facility and Credit Facilities from HDFC Bank
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 gained 0.18 per cent to Rs 39.70 per share from its previous closing of Rs 39.63 per share. The stock’s 52-week high is Rs 84 and its 52-week low of Rs 39.16.
HMA Agro Industries Limited Board of Directors of the Company in their meeting held today i.e., on Thursday, December 26, 2024, inter-alia, approved the following businesses:
1. Approval of EPC Credit Facility and Credit Facilities from HDFC Bank The Board of Directors, at its meeting held today, considered and approved the sanction of various credit facilities amounting to Rs 160,00,00,000 granted by HDFC Bank Limited (HDFC Bank) to the Company. The facilities are subject to the terms and conditions outlined in the Offer Letter dated 17/12/2024 and will become available for utilization at the Bank’s discretion upon the fulfilment of conditions mentioned in the Offer Letter, as specified in the Sanction Letter to be issued by the Bank. The Board authorized the necessary officials of the Company to execute and submit the required documentation, agreements, and security creation under the terms of the Offer Letter.
2. Noting of Intimation Regarding Closure of Trading Window The Board of Directors, at its meeting held today, took note of the intimation regarding the closure of the trading window for the declaration of the Un-audited Financial Results for the quarter and nine months ended December 31, 2024. Under the provisions of the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the Company’s Code of Conduct for Prevention of Insider Trading, the trading window will remain closed for all designated persons, including their immediate relatives, from January 01, 2025, until 48 hours after the declaration of the said financial results. This is for the information and compliance of all concerned stakeholders.
Earlier, the company formed a strategic partnership with AL RAIYAN EXPORT to expand its presence in the meat processing sector. This collaboration will allow HMA Agro to utilize AL RAIYAN EXPORT's substantial processing capacity of 232 metric tons per day. The three-year agreement, effective from December 01, 2024, covers the slaughtering, chilling, processing, freezing, and packaging of frozen halal boneless buffalo meat.
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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.
Quarterly Results: The net sales increased by 105.70 per cent QoQ & 22.14 per cent YoY to Rs 1,465.86 crore and net profit increased by 7,229.36 per cent QoQ & 848.04 per cent YoY to Rs 53.42 crore in Q2FY25 compared to Q1FY25 & Q2FY24
Half-Yearly Results: The net sales increased by 0.32 per cent to Rs 2,178.48 crore and net profit increased by 8.44 per cent to Rs 54.16 crore in H1FY25 compared to H1FY24.
The company has a market cap of Rs 1,988 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.