HMA Agro Industries Share Price Surges By 10%, Signed Strategic MOU With PKPS Of Malaysia

Today, shares of HMA Agro Industries Ltd went up prominently to 49.09 in comparison to the previous price of 44.63 per share which is around a 10% increase. This increase comes at a time when trading volume has increased over 70 times owing to high market interest. HMA Agro with a 52weeks high of Rs 84 and a market share of more than Rs 2,450 crore is one of the most beautiful stories as it is India's one of largest food export companies which offers a total compounded ROE of around 32% and ROCE of around 28%.

In an important act, HMA Agro has entered into a Memorandum of understanding with PKPS which is known as Selangor Agricultural Development Corporation and works as a governmental entity in Malaysia. This MOU was signed during the presence of the Chief Minister of Selangor which adds to the value of the MOU as both players have something to gain as a collective. The joint agreement is also intended to improve the supply of frozen boneless buffalo meat from India to Malaysia and promote collaborative research that aims to enhance the industry's standards and solve supply chain problems.

This collaboration is a clear step forward for HMA Agro as it increases the geographical footprint of the company in the ASEAN market with a particular focus on Malaysia, where HMA will have a strategic base. The tethering with PKPS will increase HMA Agro's distribution footprint as well as guarantee a reliable provision of high-quality meat products in line with the demand in Malaysia. The MOU is expected to be a win-win situation for both countries; for Malaysia, it enhances the availability of critical food items, while for HMA Agro, it increases the level of its exports and sales to other target markets.

The term of this agreement is one year, however, there is an option for either one of the parties to exit upon giving one month's notice in writing. This is aimed at providing flexibility for potential growths in the partnership in case the early objectives are achieved enabling both parties to remain competitive within the meat-processing and agricultural sectors. HMA Agro and PKPS together are expected to improve the standards and practice of meat processing in India and Malaysia and thereby enhance food processing industries in the two countries.

HMA Agro Industries Ltd founded in 2008 has become one of the most important players on the Indian food export scene and is involved in the processing and exporting of frozen buffalo meat and various agricultural products. In India, the company dominantly stands with more than 10% of the exports of the frozen buffalo meat processed in the country. The company is well known for its brands Black Gold, Kamil, and HMA. These brands sell frozen fresh buffalo meat, processed natural food, vegetables, and cereals all over the world and are currently exported to more than 40 countries.

HMA Agro operates seamlessly and efficiently from four integrated processing plants in Aligarh, Mohali, Agra and Parbhani in India and is in the process of setting up a fifth plant in Haryana in the near future. Such expansion goes to show that HMA Agro has the intention to grow as the need and demand from elsewhere in the world start to grow as well due to their involvement in the agriculture and food processing sector.

HMA Agro Industries has, therefore, shown no signs of stopping growing and advancing hence partnerships like PKPS MOU and looking for new operational avenues, may further cement its standing position as a prominent food exporter from India.