HMA Agro shares had a lock-in at the 10% upper circuit as markets opened on Tuesday, November 12. This came right after the announcement of the Q2 results, as nearly 15.42 lakh shares were switched hands. HMA Agro Industries is a leading producer and exporter of buffalo meat, accounting for 10% of all exports from India. Want to know what the Q2 results look like and why it matters? Read on to find out.
What do the HMA Agro Q2 Results Say?
The net profit of HMA Agro share grew by a staggering 443 percent to Rs. 51.94 crores in the quarter starting September. What’s interesting to note is that the profits clocked in during the same quarter last year were Rs. 9.55 crores. Total sales during the quarter also grew by 22 percent to reach Rs. 1,465.86 crores. Weighing this out against the previous fiscal year, the company raked in total profits of Rs. 1,200.19 crores during the same quarter. As the share price opened at Rs. 45.10 on Tuesday, it witnessed nearly a 9.5% jump compared to the previous close of Rs. 41.15.
The Q2 results of HMA Agro look promising, as the company posted a jump in consolidated earnings before taxes. EBITDA also witnessed huge growth of 301.73%, going from Rs. 17.44 crores in the first quarter of FY25 to Rs. 70.06 crores in Q2 FY25. EBIDTA for H1 FY25 was Rs. 100.85 crores, up from Rs. 87.5 crores by about 13.24%, compared to Q2 FY24.
The HMA Agro stock went public in July 2023 with an issue price of Rs. 585 per share. Later, though, in December, the board announced that it would split the stock in a ratio of 10 to 1.
HMA Agro trades as a small-cap stock with a market capitalization of Rs. 2,262.48 crores. It has been corrected by 41 percent so far in 2024.
HMA Agro Industries also recently signed an MoU with a Malaysian government entity, Perbanandan Kemajuan Pertanian Selangor. Per the agreement, the entity will supply the company with frozen buffalo meat. However, HMA Agro may look for other initiatives and joint research projects to address the challenges that face both organisations.
Conclusion
Although the Q2 results of HMA Agro Industries may be something to get excited about, even as the buffalo meat producer and exporter signed an MoU with the Malaysian government, production halting at one of its units in Aligarh district is still something to be wary of, even as the company suggests that there is nothing to worry about, in terms of financial stability or operational capacity.
HMA Agro Industries Ltd
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