Megastar Foods Limited has responded to the Bombay Stock Exchange's (BSE) inquiry regarding recent movements in its share price. The company, which specializes in food products, has clarified that the price fluctuations are primarily due to market dynamics rather than any specific corporate developments.

Key Points of Clarification

• Disclosure Compliance: Megastar Foods affirmed its adherence to SEBI regulations, stating that it has consistently made timely disclosures of all events and price-sensitive information.
• No Undisclosed Information: The company confirmed that there is no pending price-sensitive information or announcements that require communication to the exchanges.
• Market-Driven Movement: The fluctuations in share price have been attributed to market forces and investor sentiment, rather than any particular corporate actions or undisclosed developments.

Regulatory Compliance

In its response to the BSE, Megastar Foods emphasized its commitment to transparency and regulatory compliance. The company highlighted the following:

Company Background

Megastar Foods Limited, with its registered office in Chandigarh and manufacturing facility in Roopnagar, Punjab, operates in the food processing sector.

This clarification from Megastar Foods serves as a reminder to investors that stock price movements can often be influenced by broader market trends and investor perceptions, rather than always being indicative of company-specific developments. It underscores the importance of considering multiple factors when analyzing stock price fluctuations in the dynamic Indian stock market.

Megastar Foods Limited , a leading wheat flour manufacturer in North India, has released an investor presentation highlighting its robust performance and market position. The company, which boasts the largest wheat flour processing capacity in North India, has demonstrated significant growth and operational efficiency in recent years.

Financial Performance

Megastar Foods reported impressive financial results for the first quarter:

For the previous fiscal year, the company achieved notable year-on-year growth:

Despite the decline in PAT, the company's revenue and EBITDA growth demonstrate its strong market position and operational efficiency.

Product Portfolio and Market Presence

Megastar Foods specializes in producing a range of wheat flour products:

• Maida (refined wheat flour): 70% of revenue
• Atta (whole wheat flour): 14% of revenue
• Sooji/Rawa (semolina): 8% of revenue

The company serves a prestigious clientele of multinational corporations, including Nestle, ITC, and Mrs. Bector, underlining its reputation for quality and reliability in the industry.

Manufacturing Capabilities

Operating from its state-of-the-art facility in Rupnagar, Punjab, Megastar Foods boasts:

• A processing capacity of 710 MT/day
• 85% utilization in refined wheat flour capacity
• In-house wheat storage capacity of 50,000 MT

The company's commitment to quality is evident through its various certifications, including FSSAI, Halal, and BRCGS.

Market Outlook

The Indian packaged atta market is poised for substantial growth, with projections indicating an expansion from Rs. 84 billion in 2024 to Rs. 256 billion by 2033, representing a CAGR of 13.16%. This positive market outlook bodes well for Megastar Foods' future growth prospects.

Corporate Governance and Transparency

In line with its commitment to transparency, Megastar Foods has submitted its investor presentation to stock exchanges for the benefit of shareholders and potential investors. This move underscores the company's dedication to keeping stakeholders informed about its performance and strategic direction.

As Megastar Foods continues to leverage its strong market position and operational efficiencies, it remains well-positioned to capitalize on the growing demand for quality wheat flour products in India's rapidly expanding packaged food market.