Megastar Foods Ltd. (IN:MEGASTAR)
:MEGASTAR
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Megastar Foods Ltd.
(MEGASTAR)
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Rating:64Neutral
Price Target:
₹305.00
▲(35.25% Upside)
Action:ReiteratedDate:11/21/25
Megastar Foods Ltd. benefits from strong revenue growth and positive technical indicators, but faces significant challenges with profitability, cash flow, and valuation. The high P/E ratio and negative cash flow metrics are key concerns, necessitating careful financial management to sustain growth.
Positive Factors
Strong revenue growth
Megastar's ~68% revenue growth reflects durable demand expansion and successful market penetration in 2024-25. Sustained top-line growth supports scale benefits, strengthens bargaining with suppliers and customers, and provides a foundation to invest in capacity and margin improvement over the next 2–6 months.
Negative Factors
Negative operating cash flow
Operating cash flow turning negative is a structural red flag: it signals the business is not converting sales into cash effectively. Over months, this pressures liquidity, forces reliance on external financing for working capital and capex, and increases vulnerability to disruptions or slower sales cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Megastar's ~68% revenue growth reflects durable demand expansion and successful market penetration in 2024-25. Sustained top-line growth supports scale benefits, strengthens bargaining with suppliers and customers, and provides a foundation to invest in capacity and margin improvement over the next 2–6 months.
Read all positive factors
Megastar Foods Ltd. (MEGASTAR) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.48B
Dividend YieldN/A
Average Volume (3M)4.35K
Price to Earnings (P/E)21.2
Beta (1Y)0.83
Revenue Growth68.03%
EPS Growth144.69%
CountryIN
Employees181
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)5.27
Shares Outstanding11,293,700
10 Day Avg. Volume147
30 Day Avg. Volume4,346
Financial Highlights & Ratios
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 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
Megastar Foods Limited engages in the bulk food processing and producing a range of wholesome wheat flour products in India. The company offers atta, wheat flour, suji, rawa, chokar, organic atta, organic whole wheat flour, and organic wheat flour...
How the Company Makes Money
Megastar Foods Ltd. generates revenue through the production and sale of processed wheat-based products, such as specialty flours, atta, and maida, catering to both B2B (business-to-business) and institutional customers. The company earns income b...
Megastar Foods Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
60
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.59B | 3.61B | 2.75B | 3.04B | 1.85B | 1.62B |
| Gross Profit | 647.36M | 485.93M | 217.67M | 274.74M | 234.26M | 193.76M |
| EBITDA | 310.05M | 222.87M | 149.10M | 218.47M | 120.54M | 95.20M |
| Net Income | 57.53M | 37.93M | 63.23M | 100.82M | 54.53M | 40.95M |
Balance Sheet | ||||||
| Total Assets | 3.56B | 2.36B | 1.56B | 1.11B | 747.89M | 899.55M |
| Cash, Cash Equivalents and Short-Term Investments | 102.67M | 38.00M | 18.43M | 39.73M | 12.57M | 1.05M |
| Total Debt | 1.74B | 1.32B | 568.54M | 578.24M | 343.24M | 501.47M |
| Total Liabilities | 2.58B | 1.42B | 634.04M | 645.56M | 389.21M | 598.75M |
| Stockholders Equity | 979.11M | 936.72M | 921.26M | 460.86M | 358.68M | 300.80M |
Cash Flow | ||||||
| Free Cash Flow | -268.56M | -601.37M | -353.86M | -166.61M | 182.04M | -268.07M |
| Operating Cash Flow | -214.58M | -99.04M | 164.09M | 115.42M | 274.09M | -220.16M |
| Investing Cash Flow | -96.40M | -489.70M | -532.51M | -262.71M | -80.27M | -46.36M |
| Financing Cash Flow | 369.00M | 608.31M | 347.12M | 174.48M | -182.33M | 259.84M |
Megastar Foods Ltd. Technical Analysis
Positive
225.50
Price Trends
244.85
Positive
240.00
Positive
244.37
Positive
Market Momentum
12.89
Negative
72.71
Negative
93.86
Negative
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 225.5 is below the 20-day moving average (MA) of 264.95, below the 50-day MA of 244.85, and below the 200-day MA of 244.37, indicating a bullish trend. The MACD of 12.89 indicates Negative momentum. The RSI at 72.71 is Negative, neither overbought nor oversold. The STOCH value of 93.86 is Negative, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | ₹3.48B | 21.19 | ― | ― | 68.03% | 144.69% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | ₹1.97B | 39.81 | ― | ― | 72.12% | -25.75% | |
58 Neutral | ₹6.14B | 185.31 | ― | ― | -6.00% | -7.67% | |
54 Neutral | ₹4.62B | 296.89 | ― | 0.43% | 2.72% | 14.00% | |
54 Neutral | ₹3.94B | 18.03 | ― | ― | 17.22% | 90.29% | |
44 Neutral | ₹1.40B | 15.57 | ― | ― | 26.18% | 260.80% |
* Consumer Defensive Sector Average
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Megastar Foods Ltd. Corporate Events
Megastar Foods Announces Resignation of Company Secretary and Compliance Officer
May 5, 2026
Megastar Foods Limited has announced that its Company Secretary and Compliance Officer, Ms. Deepali Chhabra, has resigned from her roles as key managerial personnel. She submitted her resignation on May 05, 2026, citing personal reasons, and was r...
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.