Megastar Foods (India) Buy Hold or Sell Recommendation
| MEGASTAR | 219.50 4.65 2.07% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Megastar Foods Limited is 'Strong Sell'. Macroaxis provides Megastar Foods buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MEGASTAR positions.
Check out Megastar Foods Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Megastar and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Megastar Foods Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
Megastar |
Execute Megastar Foods Buy or Sell Advice
The Megastar recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Megastar Foods Limited. Macroaxis does not own or have any residual interests in Megastar Foods Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Megastar Foods' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Megastar Foods Trading Alerts and Improvement Suggestions
| Megastar Foods generated a negative expected return over the last 90 days | |
| Megastar Foods is unlikely to experience financial distress in the next 2 years | |
| About 75.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from news.google.com: Megastar Foods Standalone September 2024 Net Sales at Rs 84.77 crore, up 36.7 percent Y-o-Y - Moneycontrol |
Megastar Foods Returns Distribution Density
The distribution of Megastar Foods' historical returns is an attempt to chart the uncertainty of Megastar Foods' future price movements. The chart of the probability distribution of Megastar Foods daily returns describes the distribution of returns around its average expected value. We use Megastar Foods Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Megastar Foods returns is essential to provide solid investment advice for Megastar Foods.
| Mean Return | -0.44 | Value At Risk | -3.54 | Potential Upside | 3.05 | Standard Deviation | 2.63 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Megastar Foods historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Megastar Foods Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 6.7M | (7.4M) | 11.5M | 27.2M | (21.3M) | (20.2M) | |
| Free Cash Flow | 109.6M | (303.6M) | 182.0M | (166.6M) | (353.9M) | (336.2M) | |
| Capital Expenditures | 37.5M | 47.3M | 68.5M | 282.0M | 517.9M | 543.8M | |
| End Period Cash Flow | 8.5M | 1.0M | 12.5M | 39.7M | 18.4M | 10.2M | |
| Change To Inventory | 85.3M | (371.7M) | 245.0M | 8.6M | 65.3M | 68.5M | |
| Depreciation | 12.6M | 16.1M | 18.5M | 21.5M | 25.7M | 13.3M | |
| Other Non Cash Items | 1.1M | (4.2M) | 5.5M | 26.5M | 44.8M | 47.1M | |
| Net Income | 47.1M | 58.9M | 72.1M | 136.3M | 63.2M | 44.9M | |
| Investments | (60.0M) | (24.3M) | (56.7M) | (262.7M) | (532.5M) | (505.9M) |
Megastar Foods Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Megastar Foods or Food Products sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Megastar Foods' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Megastar stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.44 | |
β | Beta against Dow Jones | -0.06 | |
σ | Overall volatility | 2.50 | |
Ir | Information ratio | -0.22 |
Megastar Foods Volatility Alert
Megastar Foods Limited exhibits very low volatility with skewness of 2.42 and kurtosis of 10.62. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Megastar Foods' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Megastar Foods' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Megastar Foods Fundamentals Vs Peers
Comparing Megastar Foods' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Megastar Foods' direct or indirect competition across all of the common fundamentals between Megastar Foods and the related equities. This way, we can detect undervalued stocks with similar characteristics as Megastar Foods or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Megastar Foods' fundamental indicators could also be used in its relative valuation, which is a method of valuing Megastar Foods by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Megastar Foods to competition |
| Fundamentals | Megastar Foods | Peer Average |
| Return On Equity | 0.0598 | -0.31 |
| Return On Asset | 0.0261 | -0.14 |
| Profit Margin | 0.01 % | (1.27) % |
| Operating Margin | 0.04 % | (5.51) % |
| Current Valuation | 4.25 B | 16.62 B |
| Shares Outstanding | 11.29 M | 571.82 M |
| Shares Owned By Insiders | 75.31 % | 10.09 % |
| Price To Book | 2.70 X | 9.51 X |
| Price To Sales | 0.88 X | 11.42 X |
| Revenue | 2.75 B | 9.43 B |
| Gross Profit | 277.47 M | 27.38 B |
| EBITDA | 149.1 M | 3.9 B |
| Net Income | 63.23 M | 570.98 M |
| Total Debt | 568.54 M | 5.32 B |
| Book Value Per Share | 81.43 X | 1.93 K |
| Cash Flow From Operations | 164.09 M | 971.22 M |
| Earnings Per Share | 3.89 X | 3.12 X |
| Number Of Employees | 181 | 18.84 K |
| Beta | -0.71 | -0.15 |
| Market Capitalization | 2.48 B | 19.03 B |
| Total Asset | 1.56 B | 29.47 B |
| Retained Earnings | 370.51 M | 9.33 B |
| Working Capital | 268.81 M | 1.48 B |
| Net Asset | 1.56 B |
Megastar Foods Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Megastar . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Megastar Foods Buy or Sell Advice
When is the right time to buy or sell Megastar Foods Limited? Buying financial instruments such as Megastar Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Other Information on Investing in Megastar Stock
Megastar Foods financial ratios help investors to determine whether Megastar Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Megastar with respect to the benefits of owning Megastar Foods security.