Megastar Foods

Why is Megastar Foods Ltd falling/rising?

As of 23-Jun, Megastar Foods Ltd is seeing a stock price decline to Rs. 338.45, down 2.62%, following a trend reversal and underperforming its sector by 3.22%. Decreased investor participation and a significant drop in delivery volume are contributing to this downward pressure.

As of 23-Jun, Megastar Foods Ltd is experiencing a decline in its stock price, currently at Rs. 338.45, which reflects a change of -9.1 or -2.62%. This drop follows a trend reversal after two consecutive days of gains, indicating a shift in market sentiment. The stock opened with a loss of -2.72% today and reached an intraday low of Rs. 332.6, representing a decrease of -4.3%. <BR><BR>Additionally, the stock has underperformed its sector by -3.22% today, suggesting that it is not keeping pace with broader market trends. Despite trading above its moving averages for various periods, the stock has seen a significant decrease in investor participation, with delivery volume dropping by -31.2% compared to the 5-day average. This decline in trading activity may contribute to the downward pressure on the stock price. <BR><BR>Overall, the combination of a trend reversal, poor performance relative to the sector, and decreased investor participation are key factors contributing to the falling price of Megastar Foods Ltd.

Which are the latest news on Megastar Foods?

What does Megastar Foods do?

Megastar Foods Ltd is a micro-cap company in the FMCG sector, incorporated in 2011 and transitioned to a public company in 2018. As of March 2026, it reported net sales of 146 Cr and a net profit of 2 Cr, with a market cap of INR 331 Cr.

Overview:<BR>Megastar Foods Ltd operates in the Fast-Moving Consumer Goods (FMCG) sector and is classified as a micro-cap company.<BR><BR>History:<BR>Megastar Foods Limited was originally incorporated as a Private Limited Company on November 28, 2011, under the name "Megastar Foods Private Limited." The company transitioned to a Public Limited Company and changed its name to "Megastar Foods Limited" on March 09, 2018. The latest quarterly results reported net sales and net profit for the period ending March 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 146 Cr (Quarterly Results - Mar 2026)<BR>- Net Profit: 2 Cr (Quarterly Results - Mar 2026)<BR>- Market Cap: INR 331 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>- P/E: 37.00<BR>- Industry P/E: 45<BR>- Dividend Yield: 0.00%<BR>- Debt-Equity: 1.19<BR>- Return on Equity: 9.01%<BR>- Price to Book: 3.23<BR><BR>Contact Details:<BR>Address: Plot No 807 Industrial Area, Phase-II Chandigarh Chandigarh (U T): 160102<BR>Tel: 91-1881-240401<BR>Email: info@megastarfoods.com<BR>Website: http://www.megastarfoods.com

How big is Megastar Foods?

As of 10th June, Megastar Foods Ltd has a market capitalization of 331.00 Cr, with net sales of 532.58 Cr and a net profit of 9.27 Cr over the latest four quarters.

As of 10th June, Megastar Foods Ltd has a market capitalization of 331.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, Megastar Foods reported net sales of 532.58 Cr and a net profit of 9.27 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with shareholder's funds amounting to 93.67 Cr and total assets of 236.16 Cr.

Who are in the management team of Megastar Foods?

The management team of Megastar Foods includes Vikas Goel (Chairman and Managing Director), Vikas Gupta and Mudit Goyal (Whole-time Directors), Amit Mittal, Prabhat Kumar, and Savita Bansal (Independent Directors), Dhiraj Kheriwal (Company Secretary), and Rajiv Kathuria (Additional Director). They oversee the company's operations and strategic direction.

The management team of Megastar Foods includes the following key individuals:<BR><BR>1. **Vikas Goel** - Chairman cum Managing Director<BR>2. **Vikas Gupta** - Whole-time Director<BR>3. **Mudit Goyal** - Whole-time Director<BR>4. **Amit Mittal** - Independent Director<BR>5. **Prabhat Kumar** - Independent Director<BR>6. **Savita Bansal** - Independent Director<BR>7. **Dhiraj Kheriwal** - Company Secretary<BR>8. **Rajiv Kathuria** - Additional Director<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

Who are the peers of the Megastar Foods?

Megastar Foods' peers include Universus Photo, Mishtann Foods, Foods & Inns, Goodricke Group, Kings Infra, Coastal Corporat, Integra Essentia, Gujjubhai Indust, Sheetal Univer, and Annapurna Swadi. In terms of performance, Universus Photo leads with an 81.52% return, while Megastar Foods has a 23.32% return, and Gujjubhai Indust shows the lowest at -58.49%.

Peers: The peers of Megastar Foods are Universus Photo, Mishtann Foods, Foods & Inns, Goodricke Group, Kings Infra, Coastal Corporat, Integra Essentia, Gujjubhai Indust, Sheetal Univer, and Annapurna Swadi.<BR><BR>Quality Snapshot: Excellent management risk is observed at Mishtann Foods, Gujjubhai Indust, and Sheetal Univer, while Average management risk is found at Universus Photo, Foods & Inns, Megastar Foods, Kings Infra, Coastal Corporat, Integra Essentia, and Annapurna Swadi, and Below Average management risk is noted at Goodricke Group. Growth is Excellent at Mishtann Foods, Kings Infra, Gujjubhai Indust, and Sheetal Univer, while Good growth is seen at Megastar Foods and Foods & Inns, Below Average growth is present at Universus Photo, Coastal Corporat, Integra Essentia, and Goodricke Group, and Below Average growth is also noted at Mishtann Foods. Capital Structure is Excellent at Mishtann Foods, Good at Universus Photo and Kings Infra, Average at Sheetal Univer and Annapurna Swadi, and Below Average at Megastar Foods, Foods & Inns, Coastal Corporat, Integra Essentia, and Goodricke Group.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Universus Photo at 81.52%, while the peer with the lowest is Gujjubhai Indust at -58.49%. Megastar Foods has a 1-year return of 23.32%, which is significantly higher than Gujjubhai Indust but lower than Universus Photo. Additionally, the peers with negative six-month returns include Gujjubhai Indust, Mishtann Foods, Coastal Corporat, and Integra Essentia.

Should I buy, sell or hold Megastar Foods Ltd?

Are Megastar Foods Ltd latest results good or bad?

Megastar Foods Ltd's latest results show strong revenue growth with record net sales of ₹146.06 crores, up 20.33% year-on-year. However, net profit declined by 26.80% quarter-on-quarter due to rising interest costs, raising concerns about the sustainability of its growth.

The latest results for Megastar Foods Ltd present a mixed picture. On one hand, the company achieved record net sales of ₹146.06 crores for the March 2026 quarter, marking a 20.33% increase year-on-year and a 3.43% increase quarter-on-quarter. This demonstrates strong revenue growth and positions the company as a high-growth player in the FMCG sector.<BR><BR>However, the profitability aspect raises concerns. The net profit for the quarter was ₹2.24 crores, which, while up 70.99% year-on-year, reflects a significant decline of 26.80% compared to the previous quarter. This drop is largely attributed to a sharp increase in interest costs, which surged by 30.19% sequentially, impacting the company's profit margins. The operating margin also contracted to 6.75%, down from 7.99% a year ago, indicating rising cost pressures.<BR><BR>Overall, while Megastar Foods has demonstrated impressive revenue growth, the decline in profit and increasing financial burdens suggest that the sustainability of this growth is in question. Investors should be cautious and monitor the company's ability to manage its debt and improve profitability in the coming quarters.

How has been the historical performance of Megastar Foods?

Megastar Foods has shown strong sales growth, with net sales increasing to 350.12 Cr in March 2025 from 274.93 Cr in March 2024, but faced profitability challenges as profit after tax declined to 3.78 Cr due to rising expenditures and negative cash flow from operating activities at -9.00 Cr. Total assets grew to 236.16 Cr, reflecting increased borrowings.

Answer:<BR>The historical performance of Megastar Foods shows a fluctuating trend in key financial metrics over the years leading up to March 2025.<BR><BR>Breakdown:<BR>Megastar Foods reported net sales of 350.12 Cr in March 2025, a significant increase from 274.93 Cr in March 2024 and 304.20 Cr in March 2023, indicating a strong growth trajectory. The total operating income followed a similar trend, reaching 350.12 Cr in March 2025 compared to 274.93 Cr in the previous year. However, the total expenditure also rose to 328.30 Cr in March 2025 from 261.90 Cr in March 2024, primarily driven by increased raw material costs, which surged to 237.99 Cr. Operating profit (PBDIT) was reported at 22.07 Cr in March 2025, a rise from 15.07 Cr in March 2024, but profit before tax fell to 5.23 Cr from 8.22 Cr, reflecting higher interest expenses that increased to 11.47 Cr. Consequently, profit after tax declined to 3.78 Cr in March 2025 from 6.32 Cr in March 2024. On the balance sheet, total assets grew to 236.16 Cr in March 2025, up from 155.53 Cr in March 2024, while total liabilities also increased to 236.16 Cr, reflecting a rise in both long-term and short-term borrowings. Cash flow from operating activities turned negative at -9.00 Cr in March 2025, contrasting with a positive cash flow of 16.00 Cr in March 2024, although cash and cash equivalents improved to 3.00 Cr by March 2025. Overall, while Megastar Foods has shown growth in sales and assets, it faces challenges with profitability and cash flow management.

When is the next results date for Megastar Foods?

The next results date for Megastar Foods is 10 November 2025.

The next results date for Megastar Foods is scheduled for 10 November 2025.

Is Megastar Foods overvalued or undervalued?

As of October 29, 2025, Megastar Foods is considered fairly valued and overvalued with a PE ratio of 59.05, an EV to EBITDA of 15.69, and a ROCE of 7.53%, despite outperforming the Sensex with a year-to-date return of 17.64%.

As of 29 October 2025, the valuation grade for Megastar Foods has moved from very attractive to fair. The company appears to be overvalued at this time. Key ratios include a PE ratio of 59.05, an EV to EBITDA of 15.69, and a ROCE of 7.53%. <BR><BR>In comparison to its peers, Megastar Foods has a higher PE ratio than Hindustan Unilever, which stands at 55.3, and significantly higher than Nestle India at 82.05. While Megastar Foods has shown strong stock performance recently, outperforming the Sensex with a year-to-date return of 17.64% compared to the Sensex's 8.78%, the elevated valuation ratios suggest that the stock may not be justified at its current price level.

Who are the top shareholders of the Megastar Foods?

The top shareholders of Megastar Foods include promoter Vikas Goel with 22.96%, followed by Beeline Consultancy Services Private Limited at 6.64%. Individual investors hold 19.18%, and foreign institutional investors hold 2.22%, with no pledged promoter holdings or mutual fund investments.

The top shareholders of Megastar Foods include the promoters, who hold the majority of the shares. The promoter with the highest holding is Vikas Goel, owning 22.96% of the company. In terms of public shareholders, Beeline Consultancy Services Private Limited is the largest, holding 6.64%. Additionally, individual investors collectively hold 19.18% of the shares, while foreign institutional investors (FIIs) hold 2.22% through four different FIIs. There are no pledged promoter holdings and no mutual funds currently invested in the company.

What is the technical trend for Megastar Foods?

As of June 2, 2025, Megastar Foods is in a mildly bearish trend, indicated by bearish daily moving averages and monthly MACD signals, despite some mildly bullish weekly indicators, suggesting caution in trading.

As of 2 June 2025, the technical trend for Megastar Foods has changed from sideways to mildly bearish. The current stance is mildly bearish, primarily driven by the daily moving averages indicating a bearish trend and the monthly MACD showing a bearish signal. While the weekly MACD and KST are mildly bullish, they are overshadowed by the overall bearish indicators on the monthly time frame. The Bollinger Bands also reflect a mildly bearish outlook on the monthly chart. The Dow Theory indicates a mildly bearish trend on the weekly chart, further supporting the bearish sentiment. Overall, the mixed signals across different time frames suggest caution, with a stronger bearish inclination.

Has Megastar Foods declared dividend?

No Dividend History Available