Ester Industries Limited (ESTER) AI Stock Analysis

• Market Cap: ₹10.16B
• Dividend Yield: 0.41%
• Average Volume (3M): 10.63K
• Price to Earnings (P/E): 42.7
• Beta (1Y): 1.65
• Revenue Growth: 22.18%
• EPS Growth: N/A
• Country: IN
• Employees: 522
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): -0.73
• Shares Outstanding: 97,586,190
• 10 Day Avg. Volume: 14,734
• 30 Day Avg. Volume: 10,634
• 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: ₹118.00
• Price Target Upside: 9.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ₹118.00 ▲(9.77% Upside)

The overall stock score is primarily influenced by the company's strong revenue growth and cash flow improvements. However, bearish technical indicators and a high P/E ratio reduce the attractiveness of the stock. The absence of a dividend yield and significant debt levels further weigh on the score.

Ester Industries Limited Business Overview & Revenue Model

Company Description

Ester Industries Limited (ESTER) is a leading manufacturer in the polyester film and engineering plastics sectors. The company specializes in the production of a wide range of polyester films, which are used across various industries including packaging, electrical insulation, and more. Additionally, Ester Industries offers engineering plastics solutions that cater to sectors such as automotive, electrical and electronics, and consumer goods, providing high-performance materials for diverse applications.

How the Company Makes Money

Ester Industries Limited primarily generates revenue through its two core business segments: Polyester Films and Engineering Plastics. In the Polyester Films segment, the company produces and sells films used for packaging, electrical insulation, and other industrial applications. This segment benefits from growing demand in packaging due to its durability and versatility. The Engineering Plastics segment involves the production and sale of plastic compounds used in automotive, electrical, and consumer goods industries. Ester Industries collaborates with key clients in these industries to supply customized plastic solutions, enhancing its revenue through long-term contracts and partnerships. The company's earnings are significantly influenced by its ability to innovate and meet the specific needs of its clients, along with maintaining strong relationships with key partners and suppliers.

Ester Industries Limited Financial Statement Overview

Summary

Ester Industries Limited shows strong revenue growth and improved margins, but low net profit margin and significant debt highlight the need for improved profitability and leverage management.

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 2023	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.82B	12.82B	11.14B	10.57B	11.08B	9.88B
Gross Profit	4.53B	4.87B	1.23B	1.41B	2.99B	3.63B
EBITDA	1.62B	1.47B	1.04B	31.22M	1.78B	2.39B
Net Income	136.98M	136.98M	1.37B	-1.21B	1.37B	1.37B
Balance Sheet
Total Assets	15.73B	15.73B	17.15B	16.43B	14.28B	8.62B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.26B	2.05B	1.86B	604.02M	350.49M
Total Debt	6.60B	6.60B	8.16B	7.73B	6.39B	2.08B
Total Liabilities	8.00B	8.00B	9.71B	9.26B	8.06B	3.50B
Stockholders Equity	7.73B	7.73B	7.43B	7.18B	6.22B	5.12B
Cash Flow
Free Cash Flow	0.00	811.91M	-1.99B	-296.84M	-3.52B	96.53M
Operating Cash Flow	0.00	1.12B	577.38M	437.81M	618.74M	1.46B
Investing Cash Flow	0.00	-564.84M	-1.99B	417.14M	-3.92B	-1.47B
Financing Cash Flow	0.00	-1.33B	1.14B	471.44M	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: Positive
• STOCH: Positive

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 115.93, below the 50-day MA of 124.26, and below the 200-day MA of 136.31, indicating a bearish trend. The MACD of -5.68 indicates Positive momentum. The RSI at 25.24 is Positive, neither overbought nor oversold. The STOCH value of 4.24 is Positive, 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
JAYAGROGN	67 Neutral	₹11.90B	13.35		1.04%	7.47%	-3.69%
SHREEPUSHK	67 Neutral	₹12.99B	22.02		0.38%	16.35%	55.54%
INDOAMIN	66 Neutral	₹9.88B	103.93		0.37%	14.11%	30.36%
ESTER	59 Neutral	₹10.16B	42.75		0.41%	22.18%	―
CHEMFAB	52 Neutral	₹9.78B	152.41		0.18%	7.59%	-129.63%
MANALIPETC	48 Neutral	₹11.35B	37.03		1.14%	-8.24%	8.99%
Sector *	44 Neutral	C$923.76M	-8.68	-0.23%	2.69%	24.53%	-41.45%

Ester Industries Limited Corporate Events

Ester Industries Releases Q1 FY ’26 Earnings Call Transcript

Ester Industries Limited announced the availability of the transcript for its Q1 FY ’26 earnings call held on August 1, 2025. This release is part of the company’s compliance with SEBI regulations, ensuring transparency and accessibility for investors and analysts. The transcript can be accessed on the company’s website, providing stakeholders with insights into the company’s financial performance and strategic direction.