Analysts advise investors to hold the stock for at least six to eight months before taking a call on selling the counter given the strong fundamentals and niche business model of the company.
“The fundamentals of the company are robust and the business is such that there won’t be any competition from big players. Investors should wait for two quarters to see the financials, commentary and growth trajectory. The listing gains are also not that big to book profits,” said Avinash Gorakshakar of Profitmart Securities.
The company saw muted response for its IPO for the first few days, but thanks to heavy bidding from NIIs and QIB, the issue sailed through on the last day.
“We advise investors to hold their subscription from a medium-term perspective,” said Ravi Singh, Vice President and Head of Research, Share India.
Net proceeds from the fresh issue will be used for funding the working capital requirements of the company and other general corporate purposes.
The company is one of the top three market leaders in the export of packaged frozen buffalo meat products from India. It has recently begun a product diversification process into other food processing and exports of products such as frozen fish and basmati rice.HMA Agro has long-standing relations with customers which are spread in various geographies across the globe. However, it is to be noted that the company is heavily dependent on the export business for its business operations which contributed to around 90.2% of its revenue in FY22.
Aryaman Financial Services was the sole book-running lead manager, and Bigshare Service acted as registrar to the issue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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