Megastar Foods Experiences Quality Grade Revision Amid Strong Sales and EBIT Growth

Megastar Foods has recently undergone an evaluation revision, reflecting its performance metrics within the FMCG sector. The company has demonstrated notable sales growth over the past five years, achieving a rate of 24.84%. Additionally, its EBIT growth during the same period stands at 16.97%, indicating a solid operational performance.
Financial stability is underscored by an EBIT to interest ratio of 2.61, suggesting that the company is effectively managing its interest obligations. The debt metrics reveal a debt to EBITDA ratio of 8.72 and a net debt to equity ratio of 1.01, which provide insights into its leverage and capital structure.

Megastar Foods also shows a sales to capital employed ratio of 1.85, highlighting efficient use of capital. The company's tax ratio is recorded at 27.95%, and it maintains a dividend payout ratio of zero, indicating a focus on reinvestment. Institutional holding is relatively low at 4.09%, while return on capital employed (ROCE) and return on equity (ROE) average at 9.91% and 12.48%, respectively.

In comparison to its peers, Megastar Foods aligns closely with several companies in the industry, with most competitors also rated at an average level. However, a few peers, such as Integ. Industrie and SKM Egg Prod., have achieved a higher quality assessment, indicating a competitive landscape within the FMCG sector.