Ester Industries Limited (ESTER) AI Stock Analysis

• Market Cap: ₹10.83B
• Dividend Yield: 0.55%
• Average Volume (3M): 23.75K
• Price to Earnings (P/E): 45.6
• Beta (1Y): 1.69
• Revenue Growth: 16.82%
• EPS Growth: N/A
• Country: IN
• Employees: 522
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -1.62
• Shares Outstanding: 97,586,190
• 10 Day Avg. Volume: 53,727
• 30 Day Avg. Volume: 23,747
• PEG Ratio: -0.77
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 14.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹110.00 ▲(2.33% Upside)

Ester Industries Limited's overall stock score is primarily influenced by its financial performance, which shows signs of recovery and improvement. However, the technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. These factors contribute to a moderate overall score, with financial performance being the most significant positive factor.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand for Ester's products, enhancing its market position and supporting long-term business expansion.

Cash Flow Improvements

Improved cash flow strengthens Ester's ability to invest in growth opportunities, reduce debt, and ensure financial stability over the long term.

Margin Improvement

Enhanced margins reflect better cost control and operational efficiency, which are crucial for sustaining profitability in competitive markets.

Negative Factors

Debt Levels

High debt levels may limit Ester's financial flexibility and increase vulnerability to economic downturns, affecting long-term growth potential.

Net Profit Margin

Low net profit margins indicate challenges in converting revenue into profit, which could impact long-term financial health if not addressed.

Return on Equity

Modest ROE suggests inefficiencies in using shareholder equity to generate returns, which could hinder investor confidence and capital raising.

Ester Industries Limited Business Overview & Revenue Model

Company Description

Ester Industries Limited manufactures and sells polyester films and engineering plastics in India and internationally. The company offers polyester films comprising special chemical coated, metalized high barrier, metalized ultra-high barrier, transparent high barrier, isotropic, heat seal, retort, shrink sleeve, matte, UV stabilized, white opaque, gold, embossable, high clear, high friction, insulation, twist, and antistatic films, as well as printing, converting, and metallizing films. It also provides engineering plastics products under the Estoplast brand, such as poly amides-based compounds; thermoplastics polyamide; thermoplastic polyester polybutylene terephthalate resins-based compounds; polycarbonate based compounds; thermoplastic polyester polyethylene terephthalate (pet) resins and pet based compounds; acrylonitrile butadiene styrene based compounds; polyoxymethelene based compounds; and blends/alloys. In addition, the company offers specialty polymers comprising masterbatches; technical yarns; textile grades for textile application; PET for food and packaging applications; and polyester chips. It serves the food packaging, beverage packaging, home and personal care, industrial packaging, construction, identification and security, automotive, electrical and electronics, appliance, consumer and industrial goods, optical fiber cable, carpet industry, and textile industry markets. Ester Industries Limited was incorporated in 1985 and is headquartered in Gurugram, India. Ester Industries Limited is a subsidiary of Wilemina Finance Corporation.

How the Company Makes Money

Ester Industries generates revenue primarily through the sale of its core products, which include polyester films and engineering plastics. The company's revenue model relies on both domestic and international sales, catering to various industries such as packaging, automotive, and electrical. Key revenue streams include the production of BOPET films, which are widely used in packaging applications due to their excellent barrier properties, and engineering plastics, which find applications in automotive components and consumer goods. Additionally, Ester Industries has established significant partnerships with major players in the packaging and automotive sectors, enhancing its market reach and contributing to its earnings. The company also invests in research and development to innovate new products and improve existing ones, which helps drive long-term profitability.

Ester Industries Limited Financial Statement Overview

Summary

Ester Industries Limited shows a strong recovery with a notable revenue increase and improved margins. However, profitability and debt levels still require attention for sustained growth.

Income Statement

Ester Industries Limited shows a strong recovery in its income statement with a notable increase in total revenue by 21.27% from 2024 to 2025. The gross profit margin improved significantly, indicating efficient cost management. The EBIT and EBITDA margins turned positive, reflecting improved operational efficiency after a challenging year in 2024. However, net profit margin is still low, suggesting room for further improvement in profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a strong equity ratio of around 49%. The debt-to-equity ratio decreased from 2024 to 2025, suggesting an improved leverage position. However, the company still carries a significant amount of debt, which could pose a risk if earnings do not continue to improve. Return on equity (ROE) remains modest, indicating potential for better utilization of equity to generate profits.

Cash Flow

Operating cash flow improved significantly in 2025, demonstrating stronger cash generation capabilities. The free cash flow turned positive, reflecting better capital expenditure management and supporting future investments or debt reduction. The operating cash flow to net income ratio is favorable, indicating efficient conversion of income into cash. However, the company should continue focusing on maintaining positive free cash flow to ensure long-term financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.34B	12.82B	10.57B	11.08B	11.08B	9.88B
Gross Profit	5.17B	4.87B	1.41B	2.61B	2.99B	3.63B
EBITDA	1.73B	1.47B	33.88M	1.04B	1.80B	2.39B
Net Income	226.40M	136.98M	-1.21B	1.37B	1.37B	1.37B
Balance Sheet
Total Assets	0.00	15.73B	16.43B	17.15B	14.28B	8.62B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.26B	1.84B	2.05B	604.02M	350.49M
Total Debt	0.00	6.60B	7.73B	8.16B	6.39B	2.08B
Total Liabilities	-7.73B	8.00B	9.26B	9.71B	8.06B	3.50B
Stockholders Equity	7.73B	7.73B	7.18B	7.43B	6.22B	5.12B
Cash Flow
Free Cash Flow	0.00	811.91M	-296.84M	-1.99B	-3.52B	96.53M
Operating Cash Flow	0.00	1.12B	437.81M	577.38M	618.74M	1.46B
Investing Cash Flow	0.00	-564.84M	417.14M	-1.99B	-3.92B	-1.47B
Financing Cash Flow	0.00	-1.33B	-138.83M	1.14B	3.84B	33.30M

Ester Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 107.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESTER, the sentiment is Negative. The current price of 107.5 is below the 20-day moving average (MA) of 108.65, below the 50-day MA of 111.69, and below the 200-day MA of 120.92, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 25.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ESTER.

Ester Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREEPUSHK	68 Neutral	₹12.74B	19.07	―	0.50%	28.67%	50.12%
INDOAMIN	63 Neutral	₹9.66B	14.54	―	0.41%	13.01%	32.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹11.22B	12.58	―	1.16%	0.69%	-7.54%
ESTER	56 Neutral	₹10.83B	45.56	―	0.55%	16.82%	―
CHEMFAB	52 Neutral	₹8.27B	-122.15	―	0.24%	5.19%	-152.09%
MANALIPETC	49 Neutral	₹11.34B	23.35	―	0.77%	-2.41%	178.19%

Ester Industries Limited Corporate Events

Ester Industries Reports Q2 FY26 Results: Revenue Growth Amidst Profitability Challenges

Ester Industries Limited reported a 7% year-on-year growth in consolidated revenue for the second quarter of FY26, reaching ₹357 crore, driven by increased volumes in both Polyester Films and Specialty Polymers. However, profitability was impacted by softer margins in the Polyester Films segment, resulting in a net loss of ₹16 crore. The Specialty Polymer segment showed strong performance with a 39% increase in revenue and a 45% rise in EBIT, highlighting sustained demand despite the challenges faced in the Film segment due to market pressures and trade tariffs.

Ester Industries Releases Unaudited Financial Results

Ester Industries Limited has announced the publication of its unaudited financial results for the quarter and half-year ended September 30, 2025. The results were published in the newspapers Nazariya Khabar and Financial Express. This announcement is part of the company’s compliance with the SEBI regulations, ensuring transparency and timely disclosure of financial performance to stakeholders.