🧠 At a Glance
HMA Agro is one of India’s biggest buffalo meat exporters, shipping frozen boneless meat across 50+ countries. On paper, it’s a ₹5,000 Cr revenue machine. In reality, margins are dying, promoters are selling, and the stock is down 43% in a year. Welcome to the listing hangover.
✈️ 1. Introduction with Hook
This is what happens when a meat exporter gets listed in the vegan era.
HMA Agro came in hot in 2023 with an IPO pitch full of buffaloes, dollars, and global trade buzz. Today, the stock is trading near its all-time low, and the only thing sizzling is investor frustration.
FY25 says it’s still growing. The market says: “Nice… we don’t care.” 🧊
🏭 2. WTF Do They Even Do?
HMA is in the business of:
- 🥩 Frozen boneless buffalo meat (core export)
- 🐠 Seafood
- 🐶 Pet food
- 🌾 Rice & agri-products
- 👜 Processed leather (because meat wasn’t controversial enough?)
Their primary export markets: Egypt, Vietnam, Indonesia, Hong Kong — basically the meat-loving half of Asia.
They’re recognized as a “Star Export House” and control processing plants certified for export by APEDA.
💰 3. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 |
|---|---|
| Revenue | ₹5,133 Cr |
| Net Profit | ₹88 Cr |
| Operating Margin | 2% (declining!) |
| ROE | 11.5% |
| ROCE | 11.6% |
| EPS | ₹1.73 |
| Dividend Yield | 0.98% |
| Market Cap | ₹1,533 Cr |
| P/E | 17.7x |
| Book Value | ₹15.8 |
TL;DR: Big top line, shrinking bottom line. OPM fell from 5% to 2% in 2 years. That’s not a business — that’s a slow grill.
📉 4. Valuation – Cheap, Meh, or Crack?
- CMP = ₹30.7
- EPS = ₹1.73 → P/E ~17.7x
- P/BV = 1.95x
- ROE = Decent at 11.5%
🧮 Fair Value Range = ₹22 – ₹28
Anything above ₹30 assumes either:
- Margin expansion (unlikely short term)
- Market regaining appetite for meat exporters (doubtful in 2025)
🔥 5. What’s Cooking – News, Triggers, Drama
- Promoters sold 1.99% in June 2025 for MPS compliance
- Promoter Gulzar Ahmad sold 4.4 lakh shares — that too at a loss
- Stock is down 43% in 1 year
- Q4 FY25 margins: 0%
- Pet food & leather units haven’t scaled as hoped
No new plants, no new customers, no new narratives. Just meat. And malaise.
🏚️ 6. Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot | ₹ Cr |
|---|---|
| Total Liabilities | ₹1,710 Cr |
| Reserves | ₹739 Cr |
| Borrowings | ₹535 Cr |
| Fixed Assets | ₹273 Cr |
| CWIP | ₹47 Cr |
| Cash | ₹124 Cr (Ops inflow) |
Debt is manageable, but not low. And working capital cycle remains long in the tooth.
💸 7. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY25 | ₹124 Cr | ₹-150 Cr | ₹5 Cr | ₹-21 Cr |
| FY24 | ₹-166 Cr | ₹-56 Cr | ₹268 Cr | ₹46 Cr |
| FY23 | ₹136 Cr | ₹-83 Cr | ₹-3 Cr | ₹50 Cr |
Volatile cash flows. FY24 was burn-and-borrow. FY25 seems better — but depends heavily on export receipts.
📊 8. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 11.6% |
| ROE | 11.5% |
| OPM | 2% |
| Inventory Days | 56 |
| Debtor Days | 11 ✅ |
| CCC | 58 days 🔴 |
Margins are shrinking. Working capital cycle is getting longer. But debtor discipline is good.
📉 9. P&L Breakdown – Show Me the Money
| FY25 Segment | ₹ Cr |
|---|---|
| Revenue | ₹5,133 |
| EBITDA | ₹102 |
| Other Income | ₹81 (😳) |
| Net Profit | ₹88 |
Other income = 92% of profit.
Core ops barely breaking even. Let that sink in.
🥊 10. Peer Comparison – Who Else in the Game?
| Company | Sales | OPM | ROE | CMP / BV | CMP |
|---|---|---|---|---|---|
| Venky’s | ₹3,307 Cr | 5.2% | 8.2% | 1.54x | ₹1,615 |
| SKM Eggs | ₹498 Cr | 11.5% | 11.9% | 2.35x | ₹270 |
| Ovobel | ₹188 Cr | 4.5% | 11.1% | 1.34x | ₹109 |
| HMA Agro | ₹5,133 Cr | 2% | 11.5% | 1.95x | ₹30.7 |
HMA wins on scale, loses on margins. Venky’s & SKM run more efficient operations with tighter meat-to-profit ratios.
🧾 11. Miscellaneous – Shareholding, Promoters
| Shareholder | Holding (Jun ’25) |
|---|---|
| Promoters | 83.61% |
| FIIs | 5.24% |
| DIIs | 0.02% |
| Public | 11.14% |
- Promoters are offloading quietly
- Public holding growing — retail is the exit liquidity?
🧠 12. EduInvesting Verdict™
HMA Agro is a classic case of great topline, terrible margins.
- Ships meat to 50 countries, but can’t squeeze profit.
- ROE looks okay — but it’s powered by other income, not ops.
- Promoters dumping shares, market dumping the stock.
If they can’t fix OPM, this stays a ₹30 meat IPO story that never cooked.
❌ EduScore: 34/100
Juicy revenue, bland returns. Not spoiled — just undercooked.
✍️ Written by Prashant | 📅 July 4, 2025
🏷️ Tags:
HMA Agro, meat exporter India, buffalo meat IPO, frozen food stocks, agro processing stock, NSE FMCG stock, pet food export, ROE 11% stock, IPO disappointment, FII exit, margin pressure stocks, EduInvesting analysis
