Megastar Foods Ltd. (MEGASTAR) AI Stock Analysis

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Megastar Foods Ltd.

(NSE:MEGASTAR)

Select Model

Rating:53.2Neutral

Price Target:INR 304.00▲(1.52% Upside)

Action:reiterated

Date:09/26/26

The overall score reflects a growing business with improving but still modest profitability and a mixed balance sheet, weighed down by volatile cash flows and elevated debt, alongside weak current price momentum in a clear downtrend. Valuation appears moderately demanding given the P/E level and lack of dividend support, reinforcing a cautious, mid-range view on the stock.

Positive Factors

Revenue GrowthAccelerating revenue growth indicates improving demand and scale in Megastar’s packaged-foods business. If sustained, a larger sales base can support operating leverage, strengthen distribution economics, and provide a foundation for future earnings growth despite current margin constraints.

Negative Factors

Thin, Volatile MarginsVery thin and changing margins leave limited protection against cost increases, pricing pressure, or competitive discounting. Even with healthy revenue growth, small operating setbacks could materially reduce earnings, making sustained profitability less resilient over the next several quarters.

Megastar Foods Ltd. (MEGASTAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 3.34B
Dividend Yield: ―
Average Volume (3M): 1,038
Price to Earnings (P/E): 33.0
Beta (1Y): 0.91
Revenue Growth: 21.27%
EPS Growth: 74.95%
Country: India
Employees: 265
Sector: General
Sector Strength: 55
Industry: Packaged Foods

Megastar Foods Ltd. Business Overview & Revenue Model

Company Description

Founded in 2011 and headquartered in Chandigarh, India, Megastar Foods Limited is a prominent food processor specializing in the large-scale production of a diverse range of nourishing wheat flour products across India. The company's extensive offeri...

Megastar Foods Ltd. Financial Statement Overview

Summary

Revenue and earnings are improving and margins remain positive, but profitability is still thin, cash flows have been volatile, and leverage is elevated, leading to a mid-range financial strength score.

Income Statement

63Positive

Balance Sheet

58Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.58B	5.33B	3.61B	2.75B	3.04B	1.85B
Gross Profit	543.05M	480.94M	485.93M	217.67M	274.74M	234.26M
EBITDA	364.64M	358.04M	222.87M	149.10M	218.47M	120.54M
Net Income	99.12M	92.96M	37.93M	63.23M	100.82M	54.53M
Balance Sheet
Total Assets	0	2.68B	2.36B	1.56B	1.11B	747.89M
Cash, Cash Equivalents and Short-Term Investments	90.94M	90.94M	38.00M	18.43M	39.73M	12.57M
Total Debt	0	1.31B	1.32B	568.54M	578.24M	343.24M
Total Liabilities	-1.03B	1.65B	1.42B	634.04M	645.56M	389.21M
Stockholders Equity	1.03B	1.03B	936.72M	921.26M	460.86M	358.68M
Cash Flow
Free Cash Flow	-268.56M	55.62M	-601.37M	-353.86M	-166.61M	182.04M
Operating Cash Flow	-214.58M	135.10M	-99.04M	164.09M	115.42M	274.09M
Investing Cash Flow	-96.40M	-79.45M	-489.70M	-532.51M	-262.71M	-80.27M
Financing Cash Flow	369.00M	-2.72M	608.31M	347.12M	174.48M	-182.33M

Megastar Foods Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price299.45

Price Trends

50DMA281.19Positive

100DMA309.28Negative

200DMA287.59Positive

Market Momentum

MACD4.87Negative

RSI57.15Neutral

STOCH60.14Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MEGASTAR, the sentiment is Positive. The current price of 299.45 is above the 20-day moving average (MA) of 278.38, above the 50-day MA of 281.19, and above the 200-day MA of 287.59, indicating a bullish trend. The MACD of 4.87 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 60.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MEGASTAR.

Megastar Foods Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MEGASTAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ROML	56Neutral	INR 676.32M	14.95	―	―	15.31%	-22.36%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:FOODSIN	53Neutral	INR 3.44B	17.86	―	0.64%	-24.46%	-40.40%
IN:MEGASTAR	53Neutral	INR 3.30B	33.00	―	―	21.27%	74.95%
IN:GOKUL	53Neutral	INR 3.70B	18.08	―	―	15.39%	27.60%
IN:EIFFL	47Neutral	INR 6.24B	97.05	―	―	5.45%	82.24%
IN:MKPL	47Neutral	INR 1.51B	31.86	―	―	17.76%	-50.16%

* General Sector Average

Performance Comparison

IN:MEGASTAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MEGASTAR	Megastar Foods Ltd.	299.45	31.40	11.71%
IN:EIFFL	Euro India Fresh Foods Ltd.	249.00	19.68	8.58%
IN:FOODSIN	Foods & Inns Ltd.	46.55	-31.41	-40.29%
IN:GOKUL	Gokul Refoils & Solvent Ltd.	37.59	-2.51	-6.26%
IN:MKPL	M K Proteins Limited	3.98	-2.71	-40.51%
IN:ROML	Raj Oil Mills Limited	41.40	-9.10	-18.02%

Megastar Foods Ltd. Corporate Events

Megastar Foods Approves Half-Year Results and Related-Party Policy

Nov 2, 2026

Megastar Foods Limited, a listed food-sector company with facilities in Chandigarh and Punjab, had its board approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026. The results were revi...

Megastar Foods Approves Unaudited Financial Results and Related-Party Policy

Nov 2, 2026

Megastar Foods Limited operates in the food industry, although the release does not specify its primary products or market focus. The company’s board approved unaudited standalone and consolidated financial results for the quarter and half year ended...

Megastar Foods Closes Trading Window Ahead of Q2 Results

Sep 25, 2026

Megastar Foods Limited has announced the closure of its trading window for designated persons and their immediate relatives in line with SEBI (Prohibition of Insider Trading) Regulations, 2015 and its internal code of conduct. The closure will apply...

Megastar Foods Sets Virtual 15th AGM With Remote E-Voting Access

Aug 30, 2026

Megastar Foods Limited has announced that its 15th Annual General Meeting will be held on September 23, 2026 at 11:30 a.m. via video conferencing and other audio-visual means, with remote e-voting facilities provided to shareholders. The company has...

Megastar Foods Steps Up Shareholder Communication Ahead of 15th AGM

Aug 29, 2026

Megastar Foods Ltd. has informed the stock exchanges that it has dispatched communications dated 29 August 2026 to shareholders who have not registered their email addresses. The letters provide a web link to access the notice of the company’s 15th A...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 26, 2026

Megastar Foods Ltd. AI Stock Analysis