HMA Agro Industries Ltd saw its share price surge by 10%, reaching its upper circuit limit in morning trade. This rally follows the announcement of the company’s impressive Q2 results for the fiscal year 2024-25.
The stock opened at ₹45.10, up from the previous close of ₹41.15, and quickly hit an intraday high of ₹45.26.
Financial Performance: Key Metrics
The company posted a 105.7% growth in consolidated revenue, rising from ₹712.6 crore in Q1 FY25 to ₹1,465.86 crore in Q2 FY25.
Additionally, HMA Agro Industries reported a significant increase in its net profit, growing from ₹0.73 crore in Q1 FY25 to ₹53.43 crore in Q2 FY25.
HMA Agro Industries Q2 Financial Highlights
| Metric | Q1 FY25 (₹ crore) | Q2 FY25 (₹ crore) | Growth (%) |
|---|---|---|---|
| Revenue | 712.6 | 1,465.86 | 105.7% |
| EBITDA | 17.44 | 70.06 | 301.73% |
| Net Profit | 0.73 | 53.43 | 7,229.36% |
Business Developments: Strategic Moves Boosting Growth
HMA Agro Industries has made several strategic moves in recent months to strengthen its market position:
- MoU with Malaysian Entity: In October 2024, HMA Agro signed a Memorandum of Understanding (MoU) with Perbadanan Kemajuan Pertanian Selangor, a government entity from Malaysia. The agreement focuses on the supply of frozen boneless buffalo meat and explores joint research initiatives.
- Operational Challenges: Despite the strong financial performance, HMA Agro faced temporary production stoppages at its unit in Aligarh following an inspection by local authorities. However, the company has taken corrective measures and resumed operations swiftly.
What’s Driving the Stock Rally?
The significant growth in revenue and net profit has driven investor confidence, pushing the stock to its upper circuit limit. Analysts attribute the positive sentiment to the company’s strong performance in the export market and its strategic expansion initiatives.
HMA Agro Export Revenue Breakdown (Q2 FY25)
| Export Region | Revenue Contribution (%) |
|---|---|
| Middle East | 40% |
| Southeast Asia | 35% |
| Europe | 25% |
Expert Opinion: Outlook for HMA Agro Industries
Market analysts remain bullish on HMA Agro’s growth prospects. “The company’s robust performance in Q2, combined with strategic export agreements, positions it well for sustained growth,” says Anil Sharma, a senior analyst at Market Pulse.
“Investors should consider holding the stock for medium to long-term gains, given the positive business outlook.”
Conclusion
HMA Agro Industries has delivered stellar financial results, driving a strong rally in its share price. With strategic partnerships and a growing export business, the company is well-positioned for continued success.
Investors are advised to keep a close watch on the stock, especially considering its recent performance and future growth potential.
Disclaimer: This article is intended for informational purposes only. Please consult a financial advisor before making any investment decisions.
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