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Ester Industries Limited (IN:ESTER)
:ESTER
India Market
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Ester Industries Limited (ESTER) AI Stock Analysis

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IN:ESTER

Ester Industries Limited

(ESTER)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
₹124.00
▲(11.81% Upside)
Ester Industries Limited shows promising financial performance with strong revenue growth and improved cash flow, but high debt levels and low profitability remain concerns. Technical indicators suggest mixed signals with short-term bullish momentum but longer-term bearish trends. The stock appears overvalued with a high P/E ratio and low dividend yield, limiting its attractiveness to value and income investors.

Ester Industries Limited (ESTER) vs. iShares MSCI India ETF (INDA)

Ester Industries Limited Business Overview & Revenue Model

Company DescriptionEster 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 MoneyEster 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
75
Positive
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
68
Positive
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
72
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2021Dec 2020
Income Statement
Total Revenue12.82B12.82B10.57B11.14B11.08B9.88B
Gross Profit4.53B4.87B1.41B1.23B2.99B3.63B
EBITDA1.62B1.47B31.22M1.04B1.78B2.39B
Net Income136.98M136.98M-1.21B1.37B1.37B1.37B
Balance Sheet
Total Assets15.73B15.73B16.43B17.15B14.28B8.62B
Cash, Cash Equivalents and Short-Term Investments1.26B1.26B1.86B2.05B604.02M350.49M
Total Debt6.60B6.60B7.73B8.16B6.39B2.08B
Total Liabilities8.00B8.00B9.26B9.71B8.06B3.50B
Stockholders Equity7.73B7.73B7.18B7.43B6.22B5.12B
Cash Flow
Free Cash Flow0.00811.91M-296.84M-1.99B-3.52B96.53M
Operating Cash Flow0.001.12B437.81M577.38M618.74M1.46B
Investing Cash Flow0.00-564.84M417.14M-1.99B-3.92B-1.47B
Financing Cash Flow0.00-1.33B471.44M1.14B3.84B33.30M

Ester Industries Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price110.90
Price Trends
50DMA
113.20
Negative
100DMA
120.78
Negative
200DMA
130.08
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
42.85
Neutral
STOCH
6.41
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 110.9 is below the 20-day moving average (MA) of 114.37, below the 50-day MA of 113.20, and below the 200-day MA of 130.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 6.41 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
₹9.90B14.9017.63%0.37%14.11%29.69%
70
Neutral
₹11.39B12.779.52%1.06%7.47%-3.69%
67
Neutral
₹14.13B21.1610.88%0.46%16.35%55.49%
66
Neutral
₹10.82B45.540.54%22.18%
53
Neutral
₹11.10B36.252.68%0.78%-8.24%8.89%
52
Neutral
₹8.69B-163.81-1.83%0.21%7.59%-129.63%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ESTER
Ester Industries Limited
110.90
-44.84
-28.79%
IN:CHEMFAB
Chemfab Alkalis Ltd.
604.65
-437.03
-41.95%
IN:INDOAMIN
Indo Amines Limited
136.40
-98.63
-41.96%
IN:JAYAGROGN
Jayant Agro-Organics Limited
236.40
-75.19
-24.13%
IN:MANALIPETC
Manali Petrochemicals Limited
64.53
-17.63
-21.46%
IN:SHREEPUSHK
Shree Pushkar Chemicals & Fertilisers Ltd.
437.05
196.87
81.97%

Ester Industries Limited Corporate Events

Ester Industries Releases Q1 FY ’26 Earnings Call Transcript
Aug 5, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 24, 2025