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Megastar Foods Ltd.
(MEGASTAR)
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Rating:47Neutral
Price Target:
₹278.00
▲(23.28% Upside)
Action:Reiterated
Date:09/26/26
The score is held back primarily by weak financial quality (thin/volatile margins, higher leverage, and inconsistent free cash flow) and bearish technicals (below major moving averages with negative MACD). Valuation is only mid-range, with a P/E that looks demanding relative to the company’s profitability and cash-flow consistency.
Positive Factors
Accelerating Revenue Growth
Accelerating revenue indicates improving demand and scale across the packaged-food business. If maintained, stronger sales can support broader distribution, better operating absorption, and reinvestment in products and channels over the next several quarters.
Negative Factors
Thin and Volatile Margins
Very thin and uneven margins leave limited protection against cost increases, pricing pressure, or competitive intensity. Even with revenue growth, small changes in gross profitability can materially affect earnings, making durable profit expansion harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue Growth
Accelerating revenue indicates improving demand and scale across the packaged-food business. If maintained, stronger sales can support broader distribution, better operating absorption, and reinvestment in products and channels over the next several quarters.
Read all positive factors
Megastar Foods Ltd. (MEGASTAR) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.08B
Dividend YieldN/A
Average Volume (3M)1.37K
Price to Earnings (P/E)32.5
Beta (1Y)0.87
Revenue Growth35.58%
EPS Growth99.21%
CountryIN
Employees265
SectorGeneral
Sector StrengthN/A
IndustryPackaged Foods
Share Statistics
EPS (TTM)8.78
Shares Outstanding11,293,700
10 Day Avg. Volume156
30 Day Avg. Volume1,366
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)2.79
Price to Sales (P/S)0.54
P/FCF Ratio51.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 off...
Megastar Foods Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
50
Neutral
Cash Flow
41
Neutral
| 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 | 0.00 | 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 | 0.00 | 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
Neutral
225.50
Price Trends
283.00
Negative
310.76
Negative
284.77
Negative
Market Momentum
-5.24
Negative
49.71
Neutral
61.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MEGASTAR, the sentiment is Neutral. The current price of 225.5 is below the 20-day moving average (MA) of 274.64, below the 50-day MA of 283.00, and below the 200-day MA of 284.77, indicating a bearish trend. The MACD of -5.24 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 61.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MEGASTAR.
Megastar Foods Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹3.01B | 12.27 | ― | 0.73% | -20.40% | -42.01% | |
53 Neutral | ₹3.43B | 16.39 | ― | 0.26% | 15.39% | 27.60% | |
50 Neutral | ₹631.87M | 13.57 | ― | ― | 20.89% | -11.15% | |
47 Neutral | ₹3.08B | 32.51 | ― | ― | 35.58% | 99.21% | |
47 Neutral | ₹5.89B | 113.16 | ― | ― | 7.01% | -5.69% | |
47 Neutral | ₹1.48B | 29.54 | ― | ― | 17.76% | -50.16% |
* General Sector Average
IN:MEGASTAR
Megastar Foods Ltd.
272.95
-20.20
-6.89%
IN:EIFFL
Euro India Fresh Foods Ltd.
233.10
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IN:FOODSIN
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40.92
-43.42
-51.48%
IN:GOKUL
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34.61
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IN:MKPL
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3.93
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IN:ROML
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39.52
-12.03
-23.34%
Megastar Foods Ltd. Corporate Events
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 app...
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 h...
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’...
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.