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Megastar Foods Ltd. (IN:MEGASTAR)
:MEGASTAR
India Market
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Megastar Foods Ltd. (MEGASTAR) AI Stock Analysis

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IN:MEGASTAR

Megastar Foods Ltd.

(MEGASTAR)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
₹241.00
▲(14.71% 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. (MEGASTAR) vs. iShares MSCI India ETF (INDA)

Megastar Foods Ltd. Business Overview & Revenue Model

Company DescriptionMegastar 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 products. Its products are used in biscuits/cookies, pizzas, breads and buns, and other products. The company also exports its products. Megastar Foods Limited was incorporated in 2011 and is headquartered in Chandigarh, India.
How the Company Makes MoneyMegastar 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
75
Positive
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2025Dec 2023Dec 2023Dec 2021Dec 2021
Income Statement
Total Revenue3.61B3.61B3.04B2.75B1.62B1.85B
Gross Profit421.87M485.93M274.74M217.67M193.76M234.26M
EBITDA214.76M222.87M218.47M152.58M95.20M120.54M
Net Income37.93M37.93M100.82M63.23M40.95M54.53M
Balance Sheet
Total Assets2.36B2.36B1.11B1.56B899.55M747.89M
Cash, Cash Equivalents and Short-Term Investments38.00M38.00M39.73M18.43M1.05M12.57M
Total Debt1.32B1.32B578.24M568.54M501.47M343.24M
Total Liabilities1.42B1.42B645.56M634.04M598.75M389.21M
Stockholders Equity936.72M936.72M460.86M921.26M300.80M358.68M
Cash Flow
Free Cash Flow0.00-601.37M-166.61M-353.86M-268.07M182.04M
Operating Cash Flow0.00-99.04M115.42M164.09M-220.16M274.09M
Investing Cash Flow0.00-489.70M-262.71M-532.51M-46.36M-80.27M
Financing Cash Flow0.00608.31M174.48M347.12M259.84M-182.33M

Megastar Foods Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price210.10
Price Trends
50DMA
244.04
Negative
100DMA
248.94
Negative
200DMA
238.97
Negative
Market Momentum
MACD
-6.70
Positive
RSI
31.22
Neutral
STOCH
37.84
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 210.1 is below the 20-day moving average (MA) of 226.87, below the 50-day MA of 244.04, and below the 200-day MA of 238.97, indicating a bearish trend. The MACD of -6.70 indicates Positive momentum. The RSI at 31.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.84 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
₹2.52B6.0410.50%21.24%81.88%
60
Neutral
₹2.50B20.503.60%-33.14%10.36%
55
Neutral
₹5.42B32.593.13%-9.74%-6.44%
52
Neutral
₹2.37B47.6957.63%-4.29%
51
Neutral
₹2.49B11.8540.26%-22.51%-80.40%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:MEGASTAR
Megastar Foods Ltd.
210.10
-72.30
-25.60%
IN:DAVANGERE
Davangere Sugar Company Limited
3.79
-2.99
-44.10%
IN:KMSUGAR
K.M. Sugar Mills Ltd.
27.36
-13.77
-33.48%
IN:KOTARISUG
Kothari Sugars & Chemicals Ltd.
30.19
-27.52
-47.69%
IN:PONNIERODE
Ponni Sugars (Erode) Ltd.
287.20
-207.51
-41.95%
IN:SAKHTISUG
Sakthi Sugars Limited
20.91
-18.98
-47.58%
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: Aug 08, 2025