ScoreWhy is Megastar Foods Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 9.27%
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.29 times
2
With a growth in Net Profit of 47.17%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- PBT LESS OI(Q) At Rs 3.31 cr has Grown at 106.9% (vs previous 4Q average)
- NET SALES(Q) At Rs 137.97 cr has Grown at 35.9% (vs previous 4Q average)
- PAT(Q) Highest at Rs 2.34 cr.
3
With ROCE of 9, it has a Fair valuation with a 1.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 9.66%, its profits have risen by 38.4% ; the PEG ratio of the company is 1.3
4
Majority shareholders : Promoters
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Megastar Foods should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Megastar Foods for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Megastar Foods
9.66%
0.17
57.41%
Sensex
4.65%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.64%
EBIT Growth (5y)
21.38%
EBIT to Interest (avg)
2.49
Debt to EBITDA (avg)
8.40
Net Debt to Equity (avg)
1.68
Sales to Capital Employed (avg)
1.83
Tax Ratio
29.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
2.70%
ROCE (avg)
9.78%
ROE (avg)
12.28%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
50
Industry P/E
53
Price to Book Value
2.92
EV to EBIT
19.19
EV to EBITDA
14.28
EV to Capital Employed
1.72
EV to Sales
0.98
PEG Ratio
1.31
Dividend Yield
NA
ROCE (Latest)
8.95%
ROE (Latest)
5.81%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend26What is working for the Company
PBT LESS OI(Q)
At Rs 3.31 cr has Grown at 106.9% (vs previous 4Q average
NET SALES(Q)
At Rs 137.97 cr has Grown at 35.9% (vs previous 4Q average
PAT(Q)
Highest at Rs 2.34 cr.
EPS(Q)
Highest at Rs 2.07
-6What is not working for the Company
INTEREST(Q)
At Rs 3.62 cr has Grown at 42.52%
Loading Valuation Snapshot...
Here's what is working for Megastar Foods
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 3.31 cr has Grown at 106.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1.60 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 137.97 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 137.97 cr has Grown at 35.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 101.55 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 3.31 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 2.34 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.07
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Megastar Foods
Interest - Quarterly
At Rs 3.62 cr has Grown at 42.52%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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