HMA IPO

HMA IPO | Detail Review and analysis of HMA AGRO IPO

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 HMA IPO

Company Details – HMA Agro

Established in 2008, HMA Agro Industries Limited is a prominent food trade organization specializing in processed food and agricultural products. Its diverse range of offerings includes frozen fresh deglanded buffalo meat, prepared/frozen fruits, vegetables, and cereals, catering to both domestic and international markets in India.

As a leading exporter of frozen buffalo meat products, HMA Agro Industries plays a vital role in India’s meat export sector, accounting for over 10% of the country’s total frozen buffalo meat exports. The company distributes its products under the well-known brand names “Black Gold,” “Kamil,” and “HMA,” and currently serves more than 40 countries worldwide.

With four fully integrated packaged meat processing plants located in Aligarh, Mohali, Agra, and Parbhani, HMA Agro Industries ensures efficient production and quality control. Additionally, the company is in the process of establishing a fifth fully integrated meat processing unit in Haryana, expanding its capabilities. Moreover, plans to acquire an additional plant in Unnao by Q2 of FY 2022-23 are underway, further augmenting the company’s in-house meat processing capacities to over 400,000 metric tons per annum across six owned plants by Q2 of FY 2022-23.

In addition to the primary processing facilities, HMA Agro Industries owns two secondary-level meat processing units located in Jaipur and Manesar. These facilities enhance the company’s overall production and distribution capabilities.

HMA Agro Industries holds approvals for exporting its products to various countries, including the UAE, Iraq, Saudi Arabia, Oman, Bahrain, Jordan, Algeria, Egypt, Angola, Vietnam, Indonesia, Georgia, Malaysia, Cambodia, and other Middle Eastern, CIS, and African nations. Notably, approximately 90% of the company’s sales come from exports, highlighting its strong global presence.

With a workforce of approximately 25,000 employees, HMA GROUP operates in more than 10 offices and 5 environments across India. The company emphasizes sustainable growth, quality assurance, and customer satisfaction in its operations.

HMA IPO Details

HMA Agro IPO Dates 20 – 23 June 2023
HMA Agro IPO Price INR 555 – 585 per share
Fresh issue INR 150 crore
Offer For Sale INR 330 crore
Total IPO size INR 480 crore
Minimum bid (lot size) 25 shares (INR 14,625)
Face Value  INR 10 per share
Retail Allocation 35%
Listing On BSE, NSE

Company Financials – HMA Industries 

Period Ended Total Assets Total Revenue Profit After Tax Net Worth Reserves and Surplus Total Borrowing
31-Mar-19 549.27 2,784.03 31.17 141.45 137.73 131.98
31-Mar-20 472.85 2,416.61 45.90 187.05 183.32 169.13
31-Mar-21 572.04 1,720.40 71.60 258.69 254.92 181.34
31-Mar-22 856.11 3,138.98 117.62 374.65 327.03 330.02

Objective of HMA Industries IPO

The objects of the net fresh issue is to raise funds for:

  1. Working capital requirements of the company, and
  2. General corporate purpose.

HMA IPO TIME TABLE

Event Tentative Date
Opening Date Tuesday, 20 June 2023
Closing Date Friday, 23 June 2023
Basis of Allotment Thursday, 29 June 2023
Initiation of Refunds Friday, 30 June 2023
Credit of Shares to Demat Monday, 3 July 2023
Listing Date Tuesday, 4 July 2023
Cut-off time for UPI mandate confirmation 5 PM on Jun 23, 2023

HMA  IPO Reservation

QIB Shares Offered Not more than 50.00% of the Net offer
NII (HNI) Shares Offered Not less than 15.00% of the Offer
Retail Shares Offered Not less than 35.00% of the Offer
HMA Agro Industries has successfully positioned itself as a major player in the frozen buffalo meat export market from India. Its expansive market presence, robust processing infrastructure, secondary processing capabilities, and emphasis on international exports showcase the company’s strategic approach to growth and its ability to meet the global demand for high-quality food and agro products.

Based on the provided financial information for HMA Agro Industries Limited, let’s analyze the company’s performance over the given periods:

  1. Total Assets: The total assets of HMA Agro Industries have shown an increasing trend from ₹549.27 crores in 31-Mar-19 to ₹856.11 crores in 31-Mar-22. This indicates the company’s growth in its asset base, which can be attributed to investments, acquisitions, and expansion activities.
  2. Total Revenue: HMA Agro Industries experienced a slight decline in total revenue from ₹2,784.03 crores in 31-Mar-19 to ₹1,720.40 crores in 31-Mar-21. However, there was a significant recovery, with total revenue rising to ₹3,138.98 crores in 31-Mar-22. This demonstrates a strong rebound in revenue, indicating improved sales performance.
  3. Profit After Tax: The company’s profit after tax increased consistently over the given periods. It rose from ₹31.17 crores in 31-Mar-19 to ₹117.62 crores in 31-Mar-22. This upward trend reflects the company’s ability to enhance profitability and generate higher earnings.
  4. Net Worth, Reserves, and Surplus: HMA Agro Industries’ net worth, including reserves and surplus, witnessed substantial growth. It increased from ₹141.45 crores in 31-Mar-19 to ₹374.65 crores in 31-Mar-22. This indicates the company’s strong financial position and accumulated retained earnings.
  5. Total Borrowings: The company’s total borrowing increased gradually from ₹131.98 crores in 31-Mar-19 to ₹330.02 crores in 31-Mar-22. This suggests the company utilized borrowing to support its growth and expansion plans. Monitoring and managing the borrowing levels will be crucial to maintain a healthy debt-to-equity ratio.

Overall, HMA Agro Industries demonstrated positive financial performance with increasing total assets, recovering revenue, rising profitability, and a growing net worth.

HMA IPO Valuations & Margins

FY 2020 FY 2021 FY 2022
EPS 9.66 15.07 24.39
PE ratio – – 22.76 – 23.99
RONW (%) 24.54 27.68 30.93
NAV 39.37 54.45 78.85
ROCE (%) 36.58 39.16 42.15
EBITDA (%) 3.31 6.47 5.70
Debt/Equity 0.90 0.70 0.88

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Based on the provided financial data for FY 2020, FY 2021, and FY 2022, let’s analyze the company:

  1. Earnings Per Share (EPS): The EPS shows the company’s profitability on a per-share basis. HMA Agro Industries has witnessed consistent growth in EPS over the years, from 9.66 in FY 2020 to 24.39 in FY 2022. This indicates improved profitability and earnings potential.
  2. Price-to-Earnings Ratio (PE ratio): The PE ratio represents the market’s valuation of a company’s earnings. Unfortunately, the PE ratio data is missing for the company, so it’s challenging to evaluate its valuation in comparison to its earnings.
  3. Return on Net Worth (RONW): RONW measures the company’s ability to generate profits from shareholders’ investments. HMA Agro Industries has shown a steady increase in RONW from 24.54% in FY 2020 to 30.93% in FY 2022. This indicates effective utilization of shareholder funds and improving profitability.
  4. Net Asset Value (NAV): NAV represents the net value of a company’s assets after deducting liabilities. HMA Agro Industries has experienced substantial growth in NAV, increasing from 39.37 in FY 2020 to 78.85 in FY 2022. This suggests that the company’s assets are growing and its financial position is strengthening.
  5. Return on Capital Employed (ROCE): ROCE measures the efficiency and profitability of a company’s capital investments. HMA Agro Industries has shown consistent improvement in ROCE, rising from 36.58% in FY 2020 to 42.15% in FY 2022. This indicates effective utilization of capital and increased profitability.
  6. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA represents a company’s operating profitability. HMA Agro Industries experienced a slight fluctuation in EBITDA, with 3.31% in FY 2020, increasing to 6.47% in FY 2021, and then slightly declining to 5.70% in FY 2022. This indicates a need for further analysis to understand the factors affecting operating profitability.
  7. Debt/Equity Ratio: The debt/equity ratio shows the proportion of debt to equity in a company’s capital structure. HMA Agro Industries has maintained a relatively stable debt/equity ratio, with a slight increase from 0.90 in FY 2020 to 0.88 in FY 2022. This suggests a manageable level of debt in the company’s capital structure.

Overall, HMA Agro Industries has shown positive financial performance with increasing EPS, RONW, NAV, and ROCE over the years. However, it is essential to further investigate the factors influencing the fluctuation in EBITDA and monitor the debt/equity ratio to ensure it remains at a manageable level.

HMA Agro Industries IPO Registrar

Bigshare Services Pvt Ltd

Phone: +91-22-6263 8200
Email: [email protected]
Website: https://www.bigshareonline.com/

Company Contact Information

HMA Agro Industries Limited
18A/5/3,
Tajview Crossing Fatehabad Road,
Agra -282001
Phone: +91 – 7217018161
Email: [email protected]
Website: https://www.hmagroup.co/

HMA IPO

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