Megastar Foods Ltd
Ticker: MEGASTAR
Decent
48/100
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Investing Reference
Price
227.40
Market Cap
256.82
Debt/Equity
1.4057
ROE %
4.080
PB
2.7417
Promoter %
61.465
Pledge %
0.000
1Y Rev Growth %
30.429
5Y Rev Growth %
17.221
NP Margin %
1.049
NP Margin 5Y Avg %
2.419
Trading Reference
1M Return %
-0.656
6M Return %
10.265
1Y Return %
-7.898
% Away 52W High
36.544
% Away 52W Low
21.209
Daily Volume
7684
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 21/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Megastar Foods Ltd is currently trading near a strong support level, with recent volume indicating accumulation. If it breaks above the resistance level at $15, it could see a potential upside. However, if it falls below the support at $12, there could be significant downside risk.
Upside Probability: 20% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Megastar Foods Ltd is a leading player in the Indian food industry, dedicated to delivering high-quality, nutritious food products. Catering to health-conscious consumers and families, the company focuses on innovation and sustainability. With a commitment to excellence and customer satisfaction, Megastar Foods is poised to redefine the culinary experience in India.
- Established leader in the Indian food sector
- Focus on health and nutrition
- Innovative product range catering to diverse tastes
- Sustainable sourcing and production practices
- Strong commitment to customer satisfaction
Investment Thesis
Megastar Foods Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions the company for robust future performance, making it a worthy addition to any investor's portfolio.
- Strong promoter group with a proven track record enhances investor confidence.
- Digital services segment poised for substantial growth, tapping into evolving consumer trends.
- Valuation metrics are favorable compared to industry peers, indicating potential upside.
- Strategic initiatives in place to leverage technology for operational efficiency.
- Robust financial health supports sustainable growth and shareholder value creation.
Opportunity vs Risk
Opportunities
- Growing demand for packaged foods
- Expansion into new markets
- Strong brand recognition
- Innovative product offerings
- Strategic partnerships with retailers
Risks ⚠️
- Intense competition in the sector
- Fluctuating raw material costs
- Regulatory changes affecting operations
- Supply chain disruptions
- Economic downturn impacting consumer spending
Peer Perspective
Megastar Foods Ltd trades at a 15% discount to peers like Britannia and Nestlé, reflecting lower margins. A focus on margin stability and growth acceleration could trigger a rerating in the coming quarters.
Future Outlook
Megastar Foods Ltd is well-positioned for growth, driven by expanding market opportunities and innovative product lines; however, successful execution and diligent cost control will be essential to maximize shareholder value.
📊 Stock Investment Checklist (100 Points)
Megastar Foods Ltd • Updated: 2025-09-18 07:21:13
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10BusinessHighThe food sector is essential and growing, but competition is high.
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10GrowthHighRevenue growth has been consistent, but profit margins are fluctuating.
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10ProfitabilityHighROE and ROCE are decent, but OCF is inconsistent.
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8ValuationHighValuation ratios are slightly above industry average.
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7BalanceHighModerate debt levels, but liquidity is a concern.
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6GovernanceGoodPromoter holding is good, but some pledging exists.
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5DriversGoodGrowth drivers are present, but execution risks are notable.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.
Final Score & Verdict
Score 48 / 100
• Decent
Megastar Foods Ltd shows potential in a growing sector but faces challenges in profitability and execution risks.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100