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Megastar FoodsNSE:MEGASTAR -1.23%93 Return-on-Tangible-Equity is 8.71% as of Mar. 2026, which is 43% below its 10-year median of 15.34. GuruFocus rates NSE:MEGASTAR with a GF Score™ of 93/100 and a GF Value™ of ₹439.53 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,881 Consumer Packaged Goods companies, Megastar Foods ranks better than 55.02% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Megastar Foods's annualized net income for the quarter that ended in Mar. 2026 was ₹90 Mil. Megastar Foods's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹1,029 Mil. Therefore, Megastar Foods's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.71%.
The historical rank and industry rank for Megastar Foods's Return-on-Tangible-Equity or its related term are showing as below:
NSE:MEGASTAR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.08 Med: 15.34 Max: 24.6
Current: 9.47
During the past 13 years, Megastar Foods's highest Return-on-Tangible-Equity was 24.60%. The lowest was 4.08%. And the median was 15.34%.
NSE:MEGASTAR's Return-on-Tangible-Equity is ranked better than 55.02% of 1881
companies
in the Consumer Packaged Goods industry
Industry Median: 7.86
vs NSE:MEGASTAR: 9.47
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Megastar Foods Return-on-Tangible-Equity Related Terms
Megastar Foods Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Megastar Foods's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:MEGASTAR vs KHC, GIS: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Megastar Foods's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Megastar Foods Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Megastar Foods's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Megastar Foods's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.71% mean?
Megastar Foods (NSE:MEGASTAR) has a Return-on-Tangible-Equity of 8.71% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Megastar Foods and its competitors. This is 43% below median its historical median of 15.34. Over the past decade, Megastar Foods' Return-on-Tangible-Equity has ranged from 4.08 to 24.60. According to the industry distribution chart, Megastar Foods ranks #846 out of 1881 companies in the Consumer Packaged Goods industry, placing it in the top 45%.
Is Megastar Foods' Return-on-Tangible-Equity too high?
Megastar Foods' current Return-on-Tangible-Equity of 8.71% is 43% below median its 10-year median of 15.34. Over the past 10 years, this metric has ranged from a low of 4.08 to a high of 24.60. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.86. Megastar Foods' value of 8.71% is 10.8% above this industry median. Based on the distribution chart, Megastar Foods ranks #846 out of 1881 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Megastar Foods has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Megastar Foods' Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Megastar Foods ranks #846 out of 1881 companies for Return-on-Tangible-Equity. This puts Megastar Foods in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.86. Megastar Foods' value of 8.71% is 10.8% above this benchmark. Historically, Megastar Foods' own Return-on-Tangible-Equity has ranged from 4.08 to 24.60 over the past decade. While the company's 10-year median is 15.34 vs. the industry median of 7.86, Megastar Foods has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.86, based on 1,881 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Megastar Foods's current Return-on-Tangible-Equity of 8.71% is 10.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Megastar Foods and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megastar Foods's current Return-on-Tangible-Equity is 8.71%, which is 43% below median its own 10-year median of 15.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megastar Foods stock overvalued right now?
Based on GuruFocus' analysis, Megastar Foods (NSE:MEGASTAR) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹439.53, compared to a current price of ₹338.40 — trading 23% below its estimated fair value. The current Return-on-Tangible-Equity is 8.71%, which is 43% below median its 10-year median of 15.34 and 10.8% above the Consumer Packaged Goods industry median of 7.86. Megastar Foods' overall GF Score™ is 93/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Megastar Foods (NSE:MEGASTAR), the current Return-on-Tangible-Equity is 8.71% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Megastar Foods (NSE:MEGASTAR) Overvalued in 2026?
Based on GuruFocus' analysis, Megastar Foods stock appears to be undervalued.
The current stock price of ₹338.40 is trading 23% below its estimated GF Value™ of ₹439.53.
GuruFocus considers Megastar Foods to be Modestly Undervalued.
Key valuation signals for NSE:MEGASTAR:
Return-on-Tangible-Equity: 8.71% (43% below median its 10-year median of 15.34)
GF Value™: ₹439.53 vs. price of ₹338.40 (23% below fair value)
Industry Position: 10.8% above the Consumer Packaged Goods median (#846 of 1881)
No single metric tells the full story. See the NSE:MEGASTAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Megastar Foods Ltd is engaged in the manufacturing of food-based products such as wheat flour and allied flour products like refined flour (maida), Semolina (suji), Bran etc. The company produces food products related to wheat such as Atta-wheat flour products, Maida-Fine wheat flour products, Suji/Rawa-Semolina, Chokar/Wheat Bran, Organic Atta, Organic whole Wheat flour and Organic wheat flour, and others.
93GF Score
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