Shares of Megastar Foods Ltd gained 18.39% on Wednesday’s morning trades to touch a fresh 52-week high of ₹ 308.00 apiece after the company reported strong results. At 10:50 AM, its shares were trading at ₹ 279.90 apiece, up 7.59%.
Megastar Foods is an Indian company engaged in the manufacturing of food-based products such as wheat flour, semolina and bran among others. Its products are used for the manufacturing of biscuits, cookies, pizzas, breads and buns. It has a wheat processing plant in northern India with a capacity of approximately 1,00,000 MT annually.
According to the company’s latest shareholding pattern, Ace Investor Ashish Kacholia has a 1.13% stake in the company or 1,12,968 shares.
On a sequential basis, the company posted a 72.03% increase in its revenue from operations to ₹ 114.50 crores for the January to March quarter of 2023 (Q4FY23), from ₹ 52.39 crores in the October to December quarter of 2023 (Q3FY23).
The company posted a whopping 118.56% growth in its consolidated revenue from operations to ₹ 114.50 crores for Q4FY23, from ₹ 52.39 crores in the January to March quarter of 2022 (Q4FY22). It posted a net profit of ₹ 3.90 crores in Q4FY23, indicating an increase of 132.14% against ₹ 1.68 crores reported in Q4FY22.
For the entire year (FY 2022-23), the company’s revenue from operations came in at ₹ 304.2 crores, up 64.61% as compared to ₹ 184.80 crores in the previous year (FY 2021-22)
With a market capitalization of ₹ 260 crores, Megastar Foods is a micro-cap company. It has a return on equity of 16.54% and a slightly high debt-to-equity ratio of 2.15. Its shares were trading at a price-to-earnings ratio of 41.99 which is higher than the industry average of 23.71.
Written by Simran Bafna
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