Megastar Foods Ltd. (MEGASTAR) AI Stock Analysis

• Market Cap: ₹2.52B
• Dividend Yield: N/A
• Average Volume (3M): 1.22K
• Price to Earnings (P/E): 49.9
• Beta (1Y): 0.92
• Revenue Growth: 57.63%
• EPS Growth: -4.29%
• Country: IN
• Employees: 181
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Packaged Foods
• EPS (TTM): 1.43
• Shares Outstanding: 11,293,700
• 10 Day Avg. Volume: 1,274
• 30 Day Avg. Volume: 1,218
• PEG Ratio: -1.28
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -3.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ₹229.00 ▲(1.46% Upside)

Megastar Foods Ltd. has strong revenue growth but faces significant profitability and cash flow challenges, impacting its financial stability. The technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. These factors collectively result in a moderate overall stock score.

Megastar Foods Ltd. Business Overview & Revenue Model

Company Description

Megastar Foods Ltd. (MEGASTAR) is a dynamic player in the food and beverage industry, specializing in the production and distribution of high-quality, innovative food products. The company operates across various sectors, including packaged foods, snacks, and beverages, catering to both retail and food service markets. With a commitment to sustainability and health-conscious options, MEGASTAR offers a diverse range of products designed to meet the evolving tastes and preferences of consumers.

How the Company Makes Money

Megastar Foods Ltd. generates revenue primarily through the sale of its food and beverage products, which include both branded and private label offerings. The company has established key revenue streams through direct sales to retailers, supermarkets, and wholesalers, as well as through e-commerce platforms. Additionally, MEGASTAR benefits from strategic partnerships with food distributors that enhance its market reach and distribution efficiency. The company also explores innovative product lines and seasonal promotions to drive sales, while leveraging marketing strategies to build brand loyalty and increase consumer awareness.

Megastar Foods Ltd. Financial Statement Overview

Summary

Megastar Foods Ltd. shows strong revenue growth, but faces profitability and cash flow challenges. The low net profit margin and negative cash flow metrics, along with increased leverage, indicate potential financial risks.

Income Statement

Megastar Foods Ltd. has demonstrated consistent revenue growth with a significant increase from 2024 to 2025, reflecting strong market demand and effective business strategies. The gross profit margin improved to 13.45% due to better cost management, while the net profit margin remained low at 1.05%, suggesting potential profitability challenges. The EBIT margin of 10.70% indicates operational efficiency, but the negative EBITDA margin highlights issues with core operations or non-operating expenses.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.41, indicating a higher reliance on debt financing which could pose financial risks if cash flows falter. Return on equity (ROE) was 4.05%, showing moderate profitability relative to shareholder investments. The equity ratio of 39.66% suggests balanced asset financing but highlights the need for cautious financial management amid growing liabilities.

Cash Flow

Megastar Foods Ltd. faced a significant decline in operating cash flow, turning negative in 2025, which could strain liquidity. The free cash flow growth rate is negative, reflecting substantial capital expenditures without sufficient cash inflows. The operating cash flow to net income ratio is negative, showing cash flow management concerns, while the free cash flow to net income ratio is also negative, indicating challenges in generating cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.11B	3.61B	2.75B	3.04B	1.85B	1.62B
Gross Profit	533.26M	485.93M	217.67M	274.74M	234.26M	193.76M
EBITDA	262.84M	222.87M	150.80M	218.47M	120.54M	95.20M
Net Income	49.76M	37.93M	63.23M	100.82M	54.53M	40.95M
Balance Sheet
Total Assets	0.00	2.36B	1.56B	1.11B	747.89M	899.55M
Cash, Cash Equivalents and Short-Term Investments	38.00M	38.00M	18.43M	39.73M	12.57M	1.05M
Total Debt	0.00	1.32B	568.54M	578.24M	343.24M	501.47M
Total Liabilities	-936.72M	1.42B	634.04M	645.56M	389.21M	598.75M
Stockholders Equity	936.72M	936.72M	921.26M	460.86M	358.68M	300.80M
Cash Flow
Free Cash Flow	0.00	-601.37M	-353.86M	-166.61M	182.04M	-268.07M
Operating Cash Flow	0.00	-99.04M	164.09M	115.42M	274.09M	-220.16M
Investing Cash Flow	0.00	-489.70M	-532.51M	-262.71M	-80.27M	-46.36M
Financing Cash Flow	0.00	608.31M	347.12M	174.48M	-182.33M	259.84M

Megastar Foods Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 225.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MEGASTAR, the sentiment is Negative. The current price of 225.7 is above the 20-day moving average (MA) of 222.36, below the 50-day MA of 227.07, and below the 200-day MA of 238.24, indicating a bearish trend. The MACD of -1.23 indicates Negative momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 32.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MEGASTAR.

Megastar Foods Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMSUGAR	76 Outperform	₹2.54B	6.09	―	―	21.24%	81.88%
KOTARISUG	60 Neutral	₹2.55B	20.93	―	―	-33.14%	10.36%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
MEGASTAR	56 Neutral	₹2.52B	49.86	―	―	57.63%	-4.29%
DAVANGERE	55 Neutral	₹4.98B	30.01	―	―	-9.74%	-6.44%
SAKHTISUG	51 Neutral	₹2.46B	11.88	―	―	-22.51%	-80.40%