Ester Industries Limited (ESTER) AI Stock Analysis

• Market Cap: ₹8.92B
• Dividend Yield: 0.56%
• Average Volume (3M): 23.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: 16.82%
• EPS Growth: N/A
• Country: IN
• Employees: 522
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -1.27
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹94.00 ▼(-6.37% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

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 recovery & margin improvement

A 21% rise in revenue alongside improved gross margins reflects recovering end-market demand and better product mix toward value-added polyester films. Sustained top-line growth with margin expansion strengthens the firm's ability to fund capex, invest in specialty products, and support long-term profitability if maintained.

Stronger operating cash flow and positive free cash flow

Material improvement in operating cash flow and a return to positive free cash flow indicate enhanced cash generation and capital discipline. Durable FCF provides flexibility to reduce leverage, reinvest in production capacity for specialty films, and withstand cyclical volatility in raw material costs over the medium term.

Healthy equity ratio and improving leverage

An equity ratio near 49% and a falling debt-to-equity ratio signal a more resilient balance sheet and greater financial flexibility. Improved leverage enhances credit standing and capacity to finance strategic investments or withstand downturns, supporting longer-term stability for capital-intensive film and polymer operations.

Negative Factors

Low net profit margin

Despite revenue and gross margin gains, persistently low net margins imply limited earnings retention after operating costs, interest and taxes. This constrains the firm's ability to build reserves, accelerate debt reduction, or fund strategic R&D and product development in specialty films without further margin improvement.

Significant remaining debt burden

Although leverage has improved, the company still holds meaningful debt that can pressure cash flow through interest obligations. Sustained earnings improvement is needed to lower financial risk; otherwise, debt servicing could restrict capex flexibility and limit the ability to scale specialty film capacity or pursue strategic initiatives.

Sharp negative EPS growth

A very large negative EPS growth rate indicates pronounced earnings volatility or a prior loss base, undermining predictability of returns. Persistent EPS swings complicate planning for reinvestment and deleveraging, and suggest the company must sustain operational improvements to convert revenue gains into consistent net earnings.

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 makes money primarily by manufacturing and selling (1) polyester films and (2) polymer/engineering plastic products to business customers. Its core revenue stream comes from sales of specialty polyester films (e.g., for packaging, lamination, labeling, electrical/electronic insulation, and other industrial end-uses), where earnings are driven by shipment volumes, product mix (standard vs. value-added/specialty films), and realizations linked to input costs and market pricing. A second revenue stream comes from polymer-related products such as polyester chips and engineering plastic compounds, sold to converters and manufacturers that use these materials to produce molded parts, film, and other plastic components; this business monetizes manufacturing margins on resin/chip and compounding operations. Overall profitability depends on spreads between selling prices and key raw-material and energy costs, utilization of manufacturing capacity, and demand conditions across packaging and industrial end markets. Specific details on significant partnerships, long-term offtake agreements, or customer concentration are null.

Ester Industries Limited Financial Statement Overview

Summary

Ester Industries Limited is showing signs of recovery and improvement across its financial statements. The income statement reflects strong revenue growth and improved margins, although profitability needs further enhancement. The balance sheet shows a stable equity position but highlights the need for continued debt management. Cash flow improvements are encouraging, supporting the company's future operational and financial strategies. Continued focus on profitability and leverage will be essential for sustainable 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.57B	12.82B	10.57B	11.08B	11.08B	9.88B
Gross Profit	5.02B	4.87B	1.41B	2.61B	2.99B	3.63B
EBITDA	1.48B	1.47B	33.88M	1.04B	1.80B	2.39B
Net Income	38.45M	136.98M	-1.21B	1.37B	1.37B	1.37B
Balance Sheet
Total Assets	17.02B	15.73B	16.43B	17.15B	14.28B	8.62B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.26B	1.84B	2.05B	604.02M	350.49M
Total Debt	7.38B	6.60B	7.73B	8.16B	6.39B	2.08B
Total Liabilities	9.10B	8.00B	9.26B	9.71B	8.06B	3.50B
Stockholders Equity	7.92B	7.73B	7.18B	7.43B	6.22B	5.12B
Cash Flow
Free Cash Flow	-242.84M	811.91M	-296.84M	-1.99B	-3.52B	96.53M
Operating Cash Flow	256.77M	1.12B	437.81M	577.38M	618.74M	1.46B
Investing Cash Flow	-774.70M	-564.84M	417.14M	-1.99B	-3.92B	-1.47B
Financing Cash Flow	654.35M	-1.33B	-138.83M	1.14B	3.84B	33.30M

Ester Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 100.4 is above the 20-day moving average (MA) of 98.40, above the 50-day MA of 97.36, and below the 200-day MA of 111.16, indicating a bearish trend. The MACD of -1.23 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 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
SHREEPUSHK	68 Neutral	₹9.84B	17.66	―	0.52%	28.67%	50.12%
INDOAMIN	63 Neutral	₹6.65B	19.71	―	0.38%	13.01%	32.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.00B	22.24	―	1.23%	0.69%	-7.54%
CHEMFAB	58 Neutral	₹5.24B	-33.35	―	0.28%	5.19%	-152.09%
ESTER	56 Neutral	₹8.92B	-20.11	―	0.56%	16.82%	―
MANALIPETC	54 Neutral	₹7.62B	3.95	―	0.82%	-2.41%	178.19%

Ester Industries Limited Corporate Events

Ester Industries Publishes Notice on Electronic Dispatch of Postal Ballot

Ester Industries Limited has published newspaper advertisements announcing the electronic dispatch of a postal ballot notice to its shareholders, in line with disclosure and advertising norms under SEBI’s listing regulations. The notice was carried in Nazariya Khabar and Financial Express, underscoring the company’s efforts to formally inform investors and ensure procedural transparency around forthcoming shareholder decisions.

The move signals routine but important corporate governance activity, as postal ballots are typically used to seek shareholder approval on key resolutions outside of physical meetings. By emphasizing electronic dispatch and wide newspaper circulation, Ester Industries is aligning with regulatory expectations on timely disclosure and potentially improving participation and awareness among its public shareholders.

Ester Industries Grants ESOPs to Specialty Polymers CMO at Discounted Price

Ester Industries Limited has granted 19,188 stock options to its Chief Marketing Officer – Specialty Polyesters/Polymers, Mr. Kunal Tank, under the Ester Industries Limited Employees Stock Option Plan 2024, as approved by the Nomination and Remuneration Committee via circular resolution on 8 January 2026. The options, compliant with SEBI’s SBEB Regulations 2021, are exercisable at a 20% discount to the fair market value of Rs 98.81 per share, translating to an exercise price of Rs 79 per option, and may be exercised within five years from the respective vesting dates; this move underscores the company’s use of equity-based incentives to retain and align key leadership in its specialty polymers business with long-term shareholder value.