Is Megastar Foods overvalued or undervalued?

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%.
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.