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Check Before You Invest : Ester Industries Ltd

BSE: 500136 NSE: ESTER ISIN: INE778B01029
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Ester Industries Ltd belong to?
Ester Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Ester Industries Ltd a good quality company?
Ester Industries Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Ester Industries Ltd undervalued or overvalued?
Ester Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Ester Industries Ltd a good buy now?
Ester Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ester Industries Ltd?
Ester Industries Ltd revenue growth is 25.1% for FY-2025 , which is above its 5 year CAGR of 0.6% , indicating faster growth.
Q.2 Gross Profit margin of Ester Industries Ltd?
Ester Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.1% for FY-2025 , which is in line with its 5 year median of 9.1% , indicating stable margins.
Q.3 Operating Profit Margin of Ester Industries Ltd?
Ester Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.35% for FY-2025 , which is in line with its 5 year median of 11.35% indicating stable margins.
Q.4 Net Profit Margin of Ester Industries Ltd?
Ester Industries Ltd Net Profit Margin is 3.79% for FY-2025 , is in line with with its 5 year median of 3.79%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 9.1 9.1
Operating Profit Margin 11.35 11.35
Net Profit Margin 3.79 3.79
Q.5 Return on Asset of Ester Industries Ltd?
Ester Industries Ltd Return on Asset is 2.58%, which is in line with its 5 year historical median of 2.58%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ester Industries Ltd?
Ester Industries Ltd Return on equity is 4.8% for FY-2025 , which is below its historical median of 5.11%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ester Industries Ltd?
Ester Industries Ltd Return on capital employed is 7.52% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ester Industries Ltd?
Ester Industries Ltd Cash conversion cycle is 69 days, below its historical median of 93 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.68 0.76
ROE 4.8 5.11
ROCE 7.52 7.52
Cash Conversion Cycle 69 days 93 days
Q.9 Debt to Equity ratio of Ester Industries Ltd?
Ester Industries Ltd Debt-to-Equity ratio is 0.35 , which is above with the industry average of 0.26 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Ester Industries Ltd?
Ester Industries Ltd Debt to cash flow from operations is 3.77 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ester Industries Ltd?
Promoters hold 62.71% of the Ester Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ester Industries Ltd vs industry peers?
Ester Industries Ltd revenue CAGR is 0.60% , compared to the industry median CAGR of 4.83% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,070.5 82.5
Gross Profit 97.4 4.5
Operating Profit 119 5.5
Net Profit 41 2.4
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.68 1.05
ROE 4.8 5.96
ROCE 7.52 8.72
Cash Conversion Cycle (days) 69.02 77

Valuation & price assessment

Q.1 Stock return of Ester Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.9% -5.2% -3.1% -30.6%
Q.3 Valuation ratios of Ester Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 73.43 5.30 38.68
Price to Book 0.95 1.27 1.89
Price to Sales 0.86 0.59 1.26
EV to EBITDA 11.69 3.54 11.07

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