High Promoter Stake FMCG Stock Partners With Maharashtra Food Processing & Cold Storage

In India, HMA Agro Industries Ltd. is a small-cap FMCG firm that deals with food and agricultural products, such as prepared/frozen natural products, vegetables, cereals, and frozen fresh buffalo meat. More than ten per cent of India's overall exports of frozen buffalo meat come from HMA Agro Industries, one of the country's largest exporters of frozen buffalo meat products.

The company said in a stock exchange filing that it "has entered into an agreement with Maharashtra Food Processing & Cold Storage (hereinafter referred to as "MFC") a Partnership Firm for providing facilities of Slaughtering, Chilling, Processing, Freezing and Packing of frozen halal boneless buffalo meat duly packed in food-grade polythene bags."

The purpose of the agreement is to expand the business through slaughtering, chilling, processing, freezing and packing of frozen halal boneless buffalo meat facilities, said HMA Agro Industries in a regulatory filing.

HMA Agro reported revenue for the September 2023 quarter of Rs 1,200.2 crore, down 54% from Rs 775.8 crore in the same period the previous year. The net profit for Q2FY24 fell by 74%, from Rs 34.46 crore in Q2FY23 to Rs 9.55 crore in Q2FY24. In the quarter, EBITDA fell 76% to Rs. 27.80 crore.

In a meeting today, the HMA Agro Industries Board of Directors decided to declare December 29 (Friday) the record date for the proposed stock split. The board of the firm approved the 1:10 subdivision of equity shares on November 8. On July 4, the company's shares, which had an issue price of Rs 585, were listed at a premium of 6.85% on the Indian stock markets at Rs 625 a share. The stock is currently selling 88% below its issue price.

During Q3FY24, HMA Agro Industries reported 83.61% stake from promoters, 7.40% FIIs stake and public stake of 8.98%. The promoter stake of the company at the current level compared to its peers such as Varun Beverages, Hatsun Agro, Bikaji Foods, Zydus Wellness, KRBL, L T Foods and Mrs Bectors Food Specialities.