Megastar Foods Ltd
Ticker: MEGASTAR
Decent
48/100
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Investing Reference
Price
285.26
Market Cap
322.16
Debt/Equity
1.4057
ROE %
4.080
PB
3.4394
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 %
27.023
6M Return %
40.474
1Y Return %
13.831
% Away 52W High
8.848
% Away 52W Low
52.049
Daily Volume
115762
Investment Verdict
Risky
Score 53/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Momentum
Score 72/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Megastar Foods Ltd shows potential for growth in the competitive food sector, driven by innovative products and expanding distribution channels.
✅ Positives
- Strong revenue growth over the past year
- Diverse product portfolio attracting various consumer segments
- Strategic partnerships enhancing market reach
⚠️ Negatives
- High competition impacting market share
- Rising raw material costs affecting margins
- Regulatory challenges in food safety compliance
Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 30/10/2025
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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