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INVESTMENT INSIGHTS

Check Before You Invest : Megastar Foods Ltd

BSE: 541352 NSE: MEGASTAR ISIN: INE00EM01016
  |   Sector:  FMCG   |   Industry:  Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Megastar Foods Ltd belong to?
Megastar Foods Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.
Q.2 Is Megastar Foods Ltd a good quality company?
Megastar Foods Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Megastar Foods Ltd undervalued or overvalued?
Megastar Foods Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Megastar Foods Ltd a good buy now?
Megastar Foods Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Megastar Foods Ltd?
Megastar Foods Ltd revenue growth is 37.8% for FY-2025 , which is above its 5 year CAGR of 16.6% , indicating faster growth.
Q.2 Gross Profit margin of Megastar Foods Ltd?
Megastar Foods Ltd Gross profit margin which is the profit after deduction of direct costs, is 3% for FY-2025 , which is below its 5 year median of 4.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Megastar Foods Ltd?
Megastar Foods Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.23% for FY-2025 , which is in line with its 5 year median of 6.23% indicating stable margins.
Q.4 Net Profit Margin of Megastar Foods Ltd?
Megastar Foods Ltd Net Profit Margin is 1.08% for FY-2025 , is below with its 5 year median of 2.55%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 3 4.6
Operating Profit Margin 6.23 6.23
Net Profit Margin 1.08 2.55
Q.5 Return on Asset of Megastar Foods Ltd?
Megastar Foods Ltd Return on Asset is 1.93%, which is below its 5 year historical median of 5.96%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Megastar Foods Ltd?
Megastar Foods Ltd Return on equity is 4.09% for FY-2025 , which is below its historical median of 15.82%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Megastar Foods Ltd?
Megastar Foods Ltd Return on capital employed is 8.96% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Megastar Foods Ltd?
Megastar Foods Ltd Cash conversion cycle is 61 days, below its historical median of 62 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.79 2.2
ROE 4.09 15.82
ROCE 8.96 13.25
Cash Conversion Cycle 61 days 62 days
Q.9 Debt to Equity ratio of Megastar Foods Ltd?
Megastar Foods Ltd Debt-to-Equity ratio is 1.41 , which is above with the industry average of 0.49 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Megastar Foods Ltd?
Megastar Foods Ltd Debt to cash flow from operations is -13.68 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Megastar Foods Ltd?
Promoters hold 61.47% of the Megastar Foods Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Megastar Foods Ltd vs industry peers?
Megastar Foods Ltd revenue CAGR is 16.56% , compared to the industry median CAGR of 6.97% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 350.1 117.4
Gross Profit 10.5 5
Operating Profit 22 7
Net Profit 4 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.79 1.2
ROE 4.09 7.15
ROCE 8.96 10.41
Cash Conversion Cycle (days) 61.12 51

Valuation & price assessment

Q.1 Stock return of Megastar Foods Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 58.65% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 58.7% 8.1% 39.8%
Q.3 Valuation ratios of Megastar Foods Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 38.86 31.38 51.80
Price to Book 3.23 6.04 2.42
Price to Sales 0.64 1.02 1.42
EV to EBITDA 13.8 15.11 14.55

Check more companies

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2. Bikaji Foods Inter.
3. Zydus Wellness
4. LT Foods
5. Devyani Internatl.
6. Orkla India
7. Manorama Industries
8. KRBL
9. Dodla Dairy
10. Mrs.Bectors Food
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