Megastar Foods Ltd. (MEGASTAR) AI Stock Analysis

• Market Cap: ₹2.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.30K
• Price to Earnings (P/E): 52.7
• Beta (1Y): 0.83
• Revenue Growth: 57.63%
• EPS Growth: -4.29%
• Country: IN
• Employees: 181
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): 1.43
• Shares Outstanding: 11,293,700
• 10 Day Avg. Volume: 553
• 30 Day Avg. Volume: 1,296
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹241.00
• Price Target Upside: 3.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ₹241.00 ▲(3.70% Upside)

Megastar Foods Ltd. faces significant challenges with profitability and cash flow, compounded by a bearish technical outlook and high valuation. These factors contribute to a cautious overall stock score.

Megastar Foods Ltd. Business Overview & Revenue Model

Company Description

Megastar Foods Ltd. (MEGASTAR) is a company operating in the food processing sector, specializing in the production and distribution of a wide range of wheat flour products. The company is committed to delivering high-quality flour to its customers, serving both domestic and international markets. Megastar Foods Ltd. is known for its state-of-the-art manufacturing facilities and a dedication to sustainable and hygienic food production practices.

How the Company Makes Money

Megastar Foods Ltd. generates revenue primarily through the sale of its wheat flour products. The company's key revenue streams include bulk sales to food manufacturers, retail sales to consumers through supermarkets and local grocery stores, and exports to international markets. Significant partnerships with agricultural producers ensure a steady supply of raw materials, while collaborations with logistics companies facilitate efficient distribution. The company's emphasis on quality and sustainability helps in maintaining customer loyalty and securing long-term contracts, which are fundamental to its earnings.

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 2023	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	3.61B	3.61B	3.04B	2.75B	1.62B	1.85B
Gross Profit	421.87M	485.93M	274.74M	217.67M	193.76M	234.26M
EBITDA	214.76M	222.87M	218.47M	152.58M	95.20M	120.54M
Net Income	37.93M	37.93M	100.82M	63.23M	40.95M	54.53M
Balance Sheet
Total Assets	2.36B	2.36B	1.11B	1.56B	899.55M	747.89M
Cash, Cash Equivalents and Short-Term Investments	38.00M	38.00M	39.73M	18.43M	1.05M	12.57M
Total Debt	1.32B	1.32B	578.24M	568.54M	501.47M	343.24M
Total Liabilities	1.42B	1.42B	645.56M	634.04M	598.75M	389.21M
Stockholders Equity	936.72M	936.72M	460.86M	921.26M	300.80M	358.68M
Cash Flow
Free Cash Flow	0.00	-601.37M	-166.61M	-353.86M	-268.07M	182.04M
Operating Cash Flow	0.00	-99.04M	115.42M	164.09M	-220.16M	274.09M
Investing Cash Flow	0.00	-489.70M	-262.71M	-532.51M	-46.36M	-80.27M
Financing Cash Flow	0.00	608.31M	174.48M	347.12M	259.84M	-182.33M

Megastar Foods Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 232.40
• 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 232.4 is below the 20-day moving average (MA) of 233.42, below the 50-day MA of 257.92, and below the 200-day MA of 239.29, indicating a bearish trend. The MACD of -7.42 indicates Negative momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 34.62 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	₹2.64B	6.34		―	21.24%	81.80%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
DAVANGERE	62 Neutral	₹5.69B	13.72		―	-9.74%	133.31%
KOTARISUG	60 Neutral	₹2.68B	22.09		3.32%	-33.14%	10.36%
MEGASTAR	52 Neutral	₹2.62B	52.75		―	57.63%	-4.29%
PONNIERODE	―	₹2.59B	16.39		1.01%	―	―
SAKHTISUG	56 Neutral	₹2.69B	12.79		―	-22.51%	-80.40%