ScoreWhy is Megastar Foods Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.73 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.73 times
- The company has been able to generate a Return on Capital Employed (avg) of 12.21% signifying low profitability per unit of total capital (equity and debt)
2
Healthy long term growth as Net Sales has grown by an annual rate of 30.16%
3
The company has declared Positive results for the last 4 consecutive quarters
- PAT(Latest six months) At Rs 5.30 cr has Grown at 201.14%
- ROCE(HY) Highest at 11.43%
- DEBTORS TURNOVER RATIO(HY) Highest at 10.83 times
4
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 17-Apr-26
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV
5
With ROCE of 11.7, it has a Fair valuation with a 2.1 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 17.07%, its profits have risen by 153.3% ; the PEG ratio of the company is 0.3
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, High Return
Absolute
Risk Adjusted
Volatility
Megastar Foods
33.06%
0.31
55.31%
Sensex
-11.8%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
29.19%
EBIT Growth (5y)
24.37%
EBIT to Interest (avg)
2.41
Debt to EBITDA (avg)
7.94
Net Debt to Equity (avg)
1.19
Sales to Capital Employed (avg)
1.88
Tax Ratio
25.73%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
6.96%
ROCE (avg)
9.97%
ROE (avg)
11.76%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
41
Price to Book Value
3.23
EV to EBIT
16.95
EV to EBITDA
12.63
EV to Capital Employed
2.02
EV to Sales
0.81
PEG Ratio
0.32
Dividend Yield
NA
ROCE (Latest)
11.65%
ROE (Latest)
9.01%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
PAT(Latest six months)
At Rs 4.47 cr has Grown at 54.14%
NET SALES(Latest six months)
At Rs 278.63 cr has Grown at 21.82%
ROCE(HY)
Highest at 11.43%
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.19 times
DEBTORS TURNOVER RATIO(HY)
Highest at 10.83 times
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Megastar Foods
Profit After Tax (PAT) - Latest six months
At Rs 4.47 cr has Grown at 54.14%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 3.19 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Latest six months
At Rs 278.63 cr has Grown at 21.82%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 10.83 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
