Consumption is one of the biggest components of the economy. As the country's robust economic performance stands out, the consumption story is bound to get a facelift. With the fast-moving consumer goods (FMCG) sector demonstrating a healthy outlook, credit rating agency CRISIL Ratings has re-affirmed its stable outlook on newly listed smallcap food trade stock HMA Agro Industries.
The IPO of HMA, which deals in handling food and agro products, hit Dalal Street last year, yielding a listing gain of around 7 per cent.
CRISIL, in a statement, said that it has reaffirmed the A-/Stable rating of the bank facilities on account of an enhancement in the amount from Rs 400 crore to Rs 500 crore.
"CRISIL Ratings has reaffirmed its CRISIL A-/Stable rating on the enhanced long-term bank facilities of HMA Agro Industries (HMA; part of the HMA group)," according to a stock exchange filing by the smallcap stock.
As per the BSE website, HMA Agro has split the face value of its equities within 1 year of listing. In December last year, the stock split its each share into 10 shares to widen the shareholder base and enhance liquidity. The process of stock splitting involves dividing the existing face value of each share by a certain ratio. Currently, the smallcap stock trades at Rs 68 on BSE.
In the third quarter of financial year 2023-24, HMA Agro's net profit rose by more than 50 per cent to Rs 46.11 crore on higher income. Total sales grew by 62 per cent to Rs 1,251 crore. As per BSE data, the smallcap stock has delivered a return of 34 per cent to its shareholders in two weeks.
