Is Megastar Foods overvalued or undervalued?

As of 17 October 2025, Megastar Foods has moved from a very attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics. Key ratios indicate this, with a PE ratio of 52.14, an EV to EBITDA of 14.41, and a PEG ratio of 7.85, all of which are significantly higher than industry norms.
In comparison to its peers, Megastar Foods' PE ratio is lower than Hindustan Unilever's 57.55 and Nestle India's 83.02, both of which are categorized as very expensive. However, the high valuation ratios suggest that Megastar Foods is not a compelling investment at this time. Additionally, the company's recent stock performance has lagged behind the Sensex over the past year, further supporting the conclusion that it is overvalued.